How to make ₹250 SIP viable, asks SEBI Chairperson Madhabi Puri Buch
Speaking at News18's Rising Bharat Summit 2024, Buch envisioned a transformative shift akin to the explosion in the shampoo market following the availability of ₹1 sachets. She cited examples from the mutual fund industry, where even small investments of ₹100 or ₹250 per month are possible through digitisation.
The chief of India's market regulator wants to wants sachet-sized investments plans to democratise India's financial market.
"We know the entire story about how the shampoo market in India exploded when it moved from bottles to sachets and people could afford to buy a ₹1 sachet or ₹2 sachet of shampoo, but could never have afforded to buy ₹100 bottle, the market just exploded," Madhabi Puri Buch, the chairperson at the Securities and Exchange Board of India said.
"We are working very closely with the industry to identify what are all the costs, including some of the regulation-driven costs, which is making this viable at ₹250 SIP," Buch explained
SIP stands for systematic investment plan, which allows small investments at regular intervals (every month, for example) instead of lump sums.
This has become an increasingly popular mode of investment. Inflows into SIPs crossed ₹19,000 crore in February, highest in any month in the India's mutual fund industry.
"Democratisation should not only focus on facilitating entry but also ensuring ease of exit for investors and traders. We need to provide seamless service throughout an investor's lifecycle, from entry to exit, to truly democratise the financial market," the 58-year-old market regulator added.
(Edited by : Shoma Bhattacharjee)
First Published: Mar 20, 2024 7:36 PM IST
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