LIC Mutual Fund is planning to introduce daily systematic investment plans (SIPs) starting at just ₹100. This is an exciting opportunity for those who want to invest smaller amounts than the usual minimums. Currently, the lowest SIP investment option at LIC Mutual Fund is ₹300. However, with this new initiative, you can start investing daily for as little as ₹100, making it easier for more people to participate in mutual funds.
This launch is expected to happen in the first week of October, according to Ravi Kumar Jha, the managing director and CEO of LIC Mutual Fund. The introduction of micro-SIPs is timely, especially after the recent announcement by the chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch. She emphasized the importance of micro-SIPs to encourage more retail investors to join the market.
Micro-SIPs are small investment plans that allow investors to contribute smaller amounts regularly. This approach is especially beneficial for people who may not have a lot of money to invest at once. With the new changes, investors will have the following options:
- Daily SIP: Start investing at just ₹100 instead of the current ₹300.
- Monthly SIP: Invest ₹250 monthly, reduced from ₹1,000.
- Quarterly SIP: Make quarterly investments of ₹750, down from ₹3,000.
These changes aim to make mutual funds more accessible, especially for individuals from rural areas or those with lower incomes. Ravi Jain, co-founder and managing director of Blostem, a fixed deposit aggregator platform, believes that these micro-SIPs will help expand the mutual fund industry’s target market. They will also encourage investing habits among the masses, which is essential for promoting financial inclusion.
The launch of micro-SIPs can significantly impact many people’s lives. By allowing smaller investments, more individuals can participate in the financial market. This is especially important in India, where many people are just starting to learn about investing. It opens the door for those who have previously felt left out due to high minimum investment requirements.
Additionally, fostering a culture of investing at a young age can help build better financial habits. When individuals start with small amounts, they may feel more comfortable as they learn about the market and become more confident in their investment decisions.
LIC Mutual Fund’s move to introduce daily SIPs starting at ₹100 is a welcome development for new investors. With the ability to invest smaller amounts, more people can participate in mutual funds, contributing to their financial growth and security. This initiative aligns with SEBI’s vision of encouraging broader participation in the market and promoting financial inclusion. As this plan rolls out, it will be interesting to see how it impacts the investing landscape in India, especially in smaller cities and towns.
Investing doesn’t have to be intimidating or out of reach. With options like micro-SIPs, even those with limited budgets can start their investment journey and work towards achieving their financial goals.Remember, before diving into any investment, research is key to making well-informed choices and setting yourself up for success. Whether you’re saving for a big purchase, planning for retirement, or just wanting to grow your wealth, these new investment options can help you get started.
