Post
yashvora23
Mutual Fund Investing
--> SEBI Chief Madhabi Puri Buch explores Rs 250 SIPs
• Inspired by the FMCG sachet model, Buch aims to make mutual fund investing more accessible. Currently, some fund houses offer Rs 100 SIPs, but Rs 250 is being explored.
--> Potential benefits:
• Increased investor base, especially at the lower income level.
• More people can experience benefits of SIPs and potentially increase their investment over time.
--> Challenges:
• Rs 250 SIPs might not be profitable for fund houses due to onboarding costs, including KYC (know your customer) verification, which can cost Rs 30-50 per investor.
• Industry suggests incentives for fund houses to promote smaller SIPs.
--> Overall goal: Make mutual funds similar to FMCG products by offering smaller investment options to a wider audience.
Mar 24 7:50 PM
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