Aditya Birla Sun Life Mutual Fund is working on launching a Rs 250 crore systematic investment plan, making it the first mutual fund in India to embark on an initiative championed by Securities and Exchange Board of India Chairman Madhavi Puri Buch.
The chairman of the Securities and Exchange Board of India made the announcement at an event organised by the Confederation of Indian Industry on Monday. A mutual fund official confirmed to NDTV Profit on condition of anonymity that a Rs 250 crore SIP is in the works.
Currently, the mutual fund industry allows individuals to invest through the SIP route with a minimum of Rs 500 per month. Recently, the market regulator has been negotiating with mutual funds to further reduce this norm. Buch has mentioned this many times this year, going so far as to say that the mutual fund industry is arguing that very small transaction amounts through SIP are not viable from a business perspective.
Funds inflows through SIPs, already a popular investment avenue, hit an all-time high in July totalling Rs 23,322 crore. In fact, SIP inflows have been hitting new highs every month since July 2023.
In his speech, Buch said the mutual fund industry and the regulator are working together to launch a Rs 250 crore SIP with the aim of leveraging technology to reduce the cost of onboarding and servicing.
