The Securities and Exchange Board of India (SEBI) has released a consultation paper on ‘Small Ticket Systematic Investment Plan’ (SIP) and sought public opinion on it. Under this scheme, investors can now buy SIP for even ₹250. It is expected that people with small and marginal income will also come under the ambit of investment. Many asset management companies (AMCs) are already offering small size SIPs.
SEBI proposal
Recently, SEBI Chairperson Madhabi Puri Buch had said that SIP of ₹250 can be launched soon. As per the SEBI proposal, small ticket SIPs can be limited to three schemes each from three asset management companies. Additionally, SEBI has proposed to limit annual investment to ₹50,000 per investor, per mutual fund, without the requirement of PAN card, although Aadhaar verification will be mandatory. The scheme does not cover existing investors, other SIP holders or individuals making lump sum investments. Investors are expected to commit for five years (60 installments), but can withdraw their money prematurely if they wish.
Monthly SIP Proposal
This Small Ticket SIP is primarily designed for monthly SIPs and will not be offered for debt schemes, sectoral or thematic funds, or small and mid-cap schemes.
SIP figures in December
Investment in SIP in the month of December stood at ₹26,459 crore, which was ₹25,320 crore in November. Assets managed under SIP stood at ₹13.63 lakh crore, which is almost one-fifth of total assets. Total assets under management (AUM) of mutual fund companies stood at ₹66.93 lakh crore at the end of December, slightly lower than ₹68.08 lakh crore in the same period last month.
