The Sebi Chairman said they are working with mutual funds to make ₹250 SIP viable for the public, which will lead to increased investments.
Noting the rise in investments in systematic investment schemes, Madhabi Puri Buch, Chairman, Securities and Exchange Board of India (SEBI), explained how the regulator is working with funds mutual to reduce the minimum cost of SIP.
SIPs in mutual funds have seen significant growth in the last few years, systematic investments worth ₹500 crore became possible, but there was no option to explore SIPs worth ₹250, which could lead to greater participation in the market.
“We are working with them (MF industry) to see where the cost is, what Sebi can do to facilitate reducing that viability to ₹250 per month, because then that number is equivalent to What Hindustan Lever did with shampoo. You’re blowing up the market,” Buch said while speaking at the Business Today event. Indian capital markets will get a major boost through smaller scale SIPs and packaging the market will contribute to the country’s financial inclusion agenda, the Sebi chairman said.
These comments come soon after the mutual fund industry reported its highest ever monthly investment through SIPs of over ₹17,000 crore in November. Buch said, although investors Foreign investors sold Indian stocks but the market did not collapse because Indian investors held the fort.
She said: “In fact, the benefits of our domestic flows and retail flows have a dual impact: the impact of their entry and the impact on foreign withdrawals because they cannot give allow yourself to miss Indian history.”
SIP hits new high in November
The number of systematic investment plans (SIPs) hit an all-time high in November this year, recorded at ₹17,000 crore. According to AMFI data, SIP investments in November 2023 surpassed October’s figure of ₹ 16,928 crore.
SIP bundling could further boost these numbers, especially amid expectations of an aggressive entry of Reliance group’s Jio Financial Services entity into the MF space.
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