Sachet SIPs: Can ₹250 a month create an investment boom in India?
The Securities and Exchange Board of India (Sebi) has proposed an ambitious initiative to drive financial inclusion: Small-ticket systematic investment plans (SIPs) with a minimum monthly investment of ₹250.
This move aims to encourage first-time investors, particularly from low-income segments and underserved regions, to participate in mutual fund investments. Despite the mutual fund industry's robust growth, a significant market remains untapped, offering immense potential for expansion.
The country's mutual fund industry has witnessed exponential growth in recent years. Total assets under management (AUM) surged from ₹10 trillion in 2014 to ₹68.08 trillion as of 30 November 2024. The number of unique investors rose from 17 million in 2018 to 51.8 million in 2024. However, penetration in rural and semi-urban areas remains low, indicating an untapped market with significant potential.
Sebi chairperson Madhabi Puri Buch emphasized the significance of this initiative, stating, «For us, financial inclusion is as important as capital formation for economic growth. The ₹250 SIP is crucial to ensure that financial opportunities reach every individual, including young girls and their families, empowering them to participate in the nation's wealth creation.»
The initiative aligns with Sebi's broader vision of fostering investor participation through its core philosophy of «Sambad», which emphasizes consultation and collaboration with industry stakeholders. The chairperson highlighted how this philosophy ensures that regulatory frameworks are co-created with industry participation, fostering growth while ensuring compliance.
The sachetization of mutual funds will allow investors to start SIPs with a minimum investment of ₹250
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