Systematic Investment Plans: How viable is Rs 250 per month SIP for Indian AMCs? Navneet Munot answers

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 try to ensure that people are continuing the SIP for a couple of years.

The Mitra platform, how this platform will help investors and to whom you are targeting?
Navneet Munot: A lot of people who may have some units which have been forgotten or have been untraceable older units, they can go to this platform and can find out which mutual fund they have invested in, what is the status of their current investments and this again is a part of the overall investor protection that SEBI and AMFI together have taken along with our ecosystem partners like RRTS, KFintech, and CAMS.