The Securities and Exchange Board of India (SEBI) has released a consultation paper on the Small Ticket Systematic Investment Plan (SIP), which proposes to provide investment facility with a minimum amount of ₹ 250. The move is expected that even those who earn minor earnings will be able to participate in the investment process. Let us know that some asset management companies (AMC) are already offering small size SIPs.
SEBI proposal
Recently, SEBI chairperson Madhabi Puri Buch had said that a SIP of ₹ 250 can be launched soon. According to SEBI’s proposal, the small ticket SIP will be limited to each of the three asset management companies in three different schemes. SEBI also proposed that without the need for a PAN, for every investor, an annual investment per mutual funds would be limited to ₹ 50,000, although Aadhaar verification will be mandatory. The scheme will not include existing investors, other SIP holders or outright investors. In addition, investors will be expected to be committed for five years (60 installments), but they can withdraw money ahead of time.
Proposal for monthly sip
Under this scheme, small ticket SIP will not be offered for loan schemes, regional or thematic funds, or small and mid-cap schemes. It is mainly designed for monthly SIP.
December SIP data
Investment in SIP was Rs 26,459 crore in December, which was Rs 25,320 crore in November. Consciousness under SIP reached Rs 13.63 lakh crore, which is about fifth of the total assets. The total assets (AUM) under the management of mutual fund companies by the end of December stood at Rs 66.93 lakh crore, which is less than Rs 68.08 lakh crore in a month ago.
