India’s securities regulator wants asset managers to introduce small investment plans that start from as little as 250 rupees (US$2.89) to promote financial inclusion and systematic saving and help investors tap the “considerable” opportunities in the 68 trillion rupee asset management industry.
The Securities Exchange Board of India (Sebi) published a consultation paper on January 22 proposing “sachetised mutual fund products” for all investment schemes except for bond funds, thematic equity funds, and small and mid-cap funds.
Sebi’s proposed entry point of 250 rupees for these products is half the current 500 rupee minimum required to invest in mutual funds.
According to the regulator, although the number of mutual fund investors has grown steadily over the years, “there is a considerable opportunity for increasing the reach of the mutual funds to all sections of the society, to enable every individual to have access to this financial product”.