You can now invest in mutual funds with just ₹250
What's the story
In a bid to make mutual fund investments more accessible, the Association of Mutual Funds in India (AMFI) has launched a new initiative called 'Chhota SIP.'
Under this program, people can start their systematic investment with just ₹250.
The move is expected to bring a sea change in the number of people investing in mutual funds across the country.
Investment trend
Mutual fund investments in India are gaining momentum
Over the past few years, mutual fund investments have caught on in India. Today, an estimated ₹26,000 crore is being pumped into the industry via SIPs every month.
The 'Chhota SIP' initiative is likely to further propel this trend by making mutual fund investments more affordable and accessible to a larger section of the population.
Investment transformation
AMFI aims to transform India into nation of investors
Navneet Munot, AMFI Chairman and HDFC Asset Management MD/CEO, stressed that India needs to move from being a nation of savers to investors.
He noted that a lot of Indians aren't investing their savings properly, creating an opportunity for programs like 'Chhota SIP.'
Munot said, "A typical Indian doesn't look at saving as income minus expenditure. They look at expenditure as income minus savings."
Endorsement
SEBI chairperson endorses 'Chhota SIP' as a long-term investment tool
SEBI Chairperson Madhabi Puri Buch also endorsed the 'Chhota SIP' initiative, saying that it is meant to encourage long-term investments.
"It is very much designed to be a long-term product. And so I am sure that's how the industry will also adopt it," Buch said.
This endorsement highlights the potential of this initiative to shape India's investment landscape in the years to come.
New initiatives
AMFI launches investor education program and tracking tool
Apart from 'Chhota SIP,' AMFI has also launched an investor education program 'Tarun Yojana' to develop good investing habits among children.
They have also introduced MITRA (Mutual Fund Investment Tracing and Retrieval Assistant), a tool to help people easily find their inactive/lost mutual fund holdings.
These initiatives are part of AMFI's larger strategy to promote responsible investing and financial literacy in India.