SEBI To Discuss Feedback On Insurance-Mutual Fund Combo Product In Next Committee Meet
SEBI is gathering data and feedback on insurance-mutual fund combo products, with discussions planned at the next mutual fund committee meeting.
SEBI Likely To Discuss Feedback On Insurance-MF Combo In The Next Committee Meet
The Security and Exchange Board of India has asked its mutual fund committee for data and feedback on the combo product of insurance and mutual fund, said Chairperson Madhabi Puri Buch at the launch of the Rs 250 JanNivesh SIP scheme by the SBI on Monday.
At the next cycle of SEBI's meeting with its mutual fund committee, it will be taken up. This is the normal cycle of new product introduction, Buch further explained.
Further talking about the current market environment and sentiments towards SIPs, Buch further mentioned that the best returns are enjoyed when the investors do not try to time the market. She further added that SIPs are the best investment products because the investor here can average out the cost of acquisition.
Buch mentioned that it is common that whenever foreign portfolio investors flows go out, the retail investors end up filling any gaps that may come up. This is the exact phenomenon that is being mirrored in the markets, she added, and concluded that there is no time like right now to invest in SIPs.
In a positive for the investors, while launching the Micro SIP scheme, CS Setty, the SBI Chairperson, mentioned that the journey of the Rs 250 SIP scheme will be completely digital. Furthermore, the asset management company will not charge any transaction fees for the scheme.
Furthermore, while speaking to NDTV Profit at the launch event, Vijay Shekhar Sharma, Chairman of Paytm, also mentioned the company's vision for contributing to the micro SIP scheme. He mentioned that Paytm will be able to bring a huge number of small merchants and shopkeepers under the purview of the scheme.
The Securities and Exchange Board of India on Jan. 22, 2025, proposed a small-ticket systematic investment plan worth Rs 250. This would be half of the current minimum monthly investment base of Rs 500. However, a final circular on this is not out yet.
As per the consultation paper floated by the regulator, an investor using this avenue will be allowed to invest in up to three schemes (one each in a different asset management company).
The regulator has also mentioned in its paper that such SIPs will only be offered under the growth option of the plan.
This is being done to encourage more participation in mutual fund investments by making it more accessible for first-time investors, low-income group individuals, and people from remote areas of the country.
In order to increase the accessibility of the scheme, SEBI has also proposed to reduce the costs related to it, such as subsidising KYC and other related expenses through the Investor Education and Awareness Fund. Investments under this scheme will primarily operate through digital payment modes like UPI or the National Automated Clearing House.
