MUMBAI: Seeking to increase financial inclusion among the under-served sections and inculcate the habit of systematic saving, capital markets regulator Sebi has proposed that fund houses launch sachet-sized systematic investment plans (SIPs) starting Rs 250.
These small-ticket SIPs would be offered at lower costs but the discounted rates would apply only for three plans per investor.
According to Sebi’s consultation paper, released on Wednesday, the scheme is to help small investors who are new to the mutual fund industry. Therefore, existing investors and those who opt for large SIPs would be excluded.
The proposal caps annual investment at Rs 50,000 per investor, per mutual fund, without PAN. However, Aadhaar verification is mandatory.
Investors are expected to make a commitment for five years (60 instalments), though there will be no restriction on closing the plan early.
The paper also suggests ways to help the asset management companies (AMCs) to recover the additional costs they incur by subsidizing these sachet-sized SIPs. It says the AMCs can be compensated from the investor education and awareness fund maintained by the mutual fund industry. Sebi estimates that AMCs will be able to break even within two years.
Sebi will accept industry feedback till February 6.