₹250 SIP features: Top points from SEBI's consultation paper on small-ticket mutual funds

The Securities and Exchange Board of India (SEBI) has proposed to sachetise mutual funds by introducing a small-ticket systematic investment plan (SIP) of ₹250.

On Wednesday, the markets regulator floated a consultation paper seeking public comments on the proposal.

This article explains the top features of the ₹250 SIP product proposed by SEBI, as per details shared in SEBI’s consultation paper.

Features of ₹250 SIP proposed by SEBI

SEBI has proposed discounted fees for ₹250 SIP by subsidizing the mutual fund asset management companies (AMCs) offering this product.

An investor can start up to three SIPs of ₹250, one each in up to three AMCs. AMCs can allow more than three ₹250 SIPs to an investor. However, discounted rates will be available only for the first three ₹250 SIPs.

SEBI said the small-ticket SIPs may be offered under the Growth option of the mutual fund scheme.

SEBI said the mode of payment/investment for ₹250 SIP may be restricted to National Automated Clearing House (NACH) and Unified Payment Interface (UPI) auto pay mode only.

As per SEBI, the small-ticket SIP may be made in statement of account (SOA) mode or demat mode of investment.

All statutory disclosures to unitholders may be through a registered mobile number and the email-id (if provided by the investor).

“If abridged disclosure is made to investors through SMS, then detailed statutory disclosures should be made available through a link shared via SMS or email, and such link should remain active for the investor,” SEBI said.

SEBI said the sachetisation of mutual funds will enable small-ticket investments in mutual funds gradually and periodically. “This can assist in the financial empowerment of the underserved sections of the economy and nudge fund houses to expand their footprints to even remote locations in the country.”

Yes. Some AMCs offer SIPs with small ticket sizes under some of their schemes. However, the ₹250 SIP proposed by SEBI will provide an opportunity for the entire industry to participate in this cause of financial inclusion.

SEBI’s consultation paper is open for public comments till February 6, 2025. Please note that some of the features of ₹250 SIP mentioned above may change in the final notification by the market regulator.