Sebi seeks feedback on sachetisation of MFs
To increase the reach and facilitate participation from low-income groups in mutual funds (MFs), regulator Sebi has floated a consultation paper on ‘sachetisation’ of mutual funds.
SEBI
New Delhi: To increase the reach and facilitate participation from low-income groups in mutual funds (MFs), regulator Sebi has floated a consultation paper on ‘sachetisation’ of mutual funds.
In its consultation paper, Sebi has proposed a sachetized mutual fund product --small ticket systematic investment plan (SIP) of Rs250. Further, small ticket SIPs can be offered in any scheme except for debt schemes, sectoral and thematic schemes, small-cap and mid-cap schemes under equity schemes category. Presently, while some Asset Management Companies (AMC) do offer SIP with small ticket size under some of their schemes. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals till February 6.
“Sachetisation of mutual funds will enable small ticket investment in mutual funds gradually on a periodic basis. This can assist in financial empowerment of the under-served section of the economy and nudge fund houses to expand their footprints to even remote locations in the country,” Sebi said.
