December 10, 2023
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SEBI working with mutual funds to make Rs 250 SIPs viable
Madhabi Puri Buch’s statement has come at a time when Indian mutual fund industry’s total assets under management is nearing Rs 50 trillion landmark.
Smaller SIPs in mutual funds can lead to greater financial inclusion and lay the foundation for future growth as well as greater resilience of Indian equity markets, the SEBI chairperson Madhabi Puri Buch has said.
Speaking at an event hosted by Business Today, Buch said the capital markets regulator was working with mutual fund houses to make Rs 250 SIP viable for the industry.
“We are working with them to see where is that cost and what SEBI can do to facilitate in making it possible to bring that viability down to Rs 250 a month. Then it would be equivalent to what Hindustan Unilever did with shampoo sashes. It will bring in financial inclusion and, equally importantly, it will give strength to our markets,” SEBI chairperson said.
SIP works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a mutual fund by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment.
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