Aditya Birla Sun Life MF To Launch Rs 250 SIP, Says SEBI Chairperson

Aditya Birla Sun Life Mutual Fund is working on launching a Rs 250 systematic investment plan, becoming the first Indian mutual fund to set the ball rolling on an initiative that has been championed by Securities and Exchange Board of India Chairperson Madhabi Puri Buch.

The SEBI chairperson made the announcement at an event organised by the Confederation of Indian Industry on Monday. A person from the mutual fund confirmed to NDTV Profit on the condition of anonymity that the Rs 250 SIP was in the works.

Currently, the mutual fund industry allows individuals to invest through the SIP route with a minimum of Rs 500 per month. In recent times, the markets regulator has been engaging with mutual funds to reduce this threshold further. Buch has alluded to this on multiple occasions this year, going so far as to say that the mutual fund industry has argued that very small transaction values through SIPs are not feasible from a business perspective.

Already a popular mode of investments, inflows through SIPs hit an all-time high in July at Rs 23,322 crore on a gross basis. In fact, the SIP inflows have hit a new high every month since July 2023.

In her address, Buch said the mutual fund industry and the regulator were working collaboratively to launch the Rs-250 SIP and that the aim is to reduce onboarding and servicing costs by leveraging technology.

In a bid to increase adoption of mutual fund investments, mutual fund houses have selectively been offering smaller SIPs for some time. Investors can choose to invest as little as Rs 100 per month in several mutual fund schemes. Navi Mutual Fund even allows investors to do a Rs 10 SIP in seven of its schemes.

While such options exist, the regulatorily mandated threshold for minimum SIP continues to be Rs 500.