
To promote financial inclusion and encourage systematic savings, the Securities and Exchange Board of India (“SEBI”) has proposed through its consultation paper the sachetisation of mutual funds through small-ticket Systematic Investment Plans (“SIPs”). This initiative enables small-scale investors to start their mutual fund journey with SIPs as low as Rs. 250.
Key Highlights of the Initiative
Objective
To empower underserved sections of the population by making mutual fund investments more accessible and affordable, promoting long-term financial discipline and inclusion.
Proposed Features of Small-Ticket SIPs
Low Investment Threshold
SIPs will start at ₹250, allowing small-ticket investments across up to three Asset Management Companies (AMCs).
Affordable Costs
Subsidized onboarding and KYC costs supported by funds allocated for investor education and awareness.
Flexible Payment Options
Payments restricted to cost-effective options like NACH and UPI Autopay, ensuring affordability.
Focus on Growth Options
Available under the Growth Option for most equity and hybrid mutual fund schemes (excluding certain debt and thematic schemes).
Incentives for Distributors
To encourage participation, distributors and execution-only platforms will receive a Rs. 500 incentive for promoting the initiative, payable after the successful completion of 24 instalments.
Transparency in Disclosures
All statutory disclosures will be sent via registered mobile numbers and email addresses, ensuring clear communication with investors.
Encouraging Long-Term Investments
Investors are encouraged to commit to a minimum of 60 instalments over five years. However, premature withdrawal remains unrestricted.
This initiative reflects SEBI's ongoing efforts to expand the reach of mutual funds and ensure every individual has access to quality financial products. By addressing cost barriers and simplifying investments, sachetisation is set to bridge the gap between underserved communities and financial markets.
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