How viable is Rs 250 per month SIP for Indian AMCs? Navneet Munot answers
Navneet Munot, MD & CEO, HDFC AMC, says they have collaborated with all ecosystem partners, including KRAs, depositories, exchanges, and banks. Their efforts are focused on making this initiative sustainable, with the aim of encouraging individuals to maintain their Systematic Investment Plans (SIPs) over the course of several years.
On Rs 250 per month SIPs
Navneet Munot: Indian mutual fund industry has 5.3 crore unique investors. This number needs to multiply over the next several years and what we have tried to do today is to reduce the ticket size of the per month SIP, bringing it down to Rs 250 where every fund house will bring down the minimum ticket size of the SIP in certain funds to 250.
If you look at Rs 250, that is almost Rs 8 per day, it makes it less than what you can buy a cup of tea or maybe a vada pav in Mumbai. So, we are really making it very accessible, very affordable, very convenient, very simple, and then people can participate in the growth story of India. So, regardless of your economic strata, regardless of your background, you can also participate in capital markets of India, that is the initiative under the guidance of SEBI, AMFI has done.
You spoke about the Rs 250 SIP. Do you think it will be viable for AMCs to continue…?
Navneet Munot: It has been structured under guidance of SEBI. We have worked with all the ecosystem partners whether it is the KRAs, whether it is depositories, whether it is exchanges, banks, everyone. We are trying our best that it becomes viable in case we can
