The Securities and Exchange Board of India (Sebi) has released a consultation paper aimed at promoting financial inclusion through the “sachetisation” of mutual fund (MF) investments. Sachetisation involves offering financial products in smaller, more affordable units, making them accessible to a broader segment of society, particularly low-income groups.
Key Highlights of Sachetisation :
- Small-Ticket Investments: The proposal suggests allowing investments as low as ₹250 to encourage individuals with limited financial means to start their investment journey.
- Systematic Investment Plan (SIP): Sebi aims to promote periodic investments through SIPs, fostering a culture of systematic savings and disciplined investment habits.
- Target Audience: The initiative focuses on underserved and low-income groups who may currently lack access to traditional investment products.
Objective of Sachetisation: The sachetisation of mutual funds seeks to:
- Make mutual fund investments more inclusive and accessible.
- Encourage first-time investors to participate in capital markets.
- Provide a sustainable and affordable means of saving and investing for individuals unfamiliar with or hesitant to enter the investment landscape.
(Source: The Mint)
