The SEBI, which is in charge of overseeing the financial market, wants more people to invest in mutual funds.
To encourage this, they are thinking about reducing the minimum investment amount to Rs 250.
If this happens, even those with a little money can start investing every month through SIP (Systematic Investment Plans). The head of SEBI, Madhabi Puri Buch, shared this idea during an event.
Right now, the mutual fund industry is worth Rs 50 trillion. The SEBI chief believes that allowing small investments in mutual funds is important for connecting everyone to the financial system and improving the Indian stock market.
SEBI is considering the possibility of Rs 250 SIP plans with mutual fund companies and is willing to support this idea.
Currently, the smallest SIP is Rs 500. Although there are some options to invest Rs 100, they are not very popular.
SEBI is also planning to introduce a new investment category for high-risk investors.
In November 2023, SIP investments reached a record high, with over Rs 17,000 crore invested in mutual funds through SIP.
People seem to like this way of investing. The number of SIP accounts increased to 7.44 crore due to the opening of 14.1 lakh new accounts in November, which is a historic high.
