SEBI plans launch of ₹250 SIP to boost small investments
What's the story
The Securities Exchange Board of India (SEBI) is gearing up to introduce a systematic investment plan (SIP) with a minimum investment limit of ₹250. The move, announced by SEBI Chairperson Madhabi Puri Buch, is aimed at making mutual fund investments more accessible to a larger audience. The announcement was made at a symposium organized in collaboration with stock exchanges and depositories.
Support
SEBI's initiative receives backing from SBI
The Chairperson of the State Bank of India (SBI), Challa Sreenivasalu, has also backed SEBI's new move. Buch stressed that the ₹250 SIP is expected to give a major push to participation in the mutual fund space. She also spoke about improvements in governance and disclosure standards in mutual funds while addressing the symposium. Currently, the standard minimum SIP amount in India typically ranges from ₹500 to ₹1,000, which can be a barrier for many potential investors.
Industry expansion
Indian mutual fund industry shows significant growth
The Indian mutual fund industry has grown tremendously, with assets under management (AUM) touching ₹66.93 lakh crore on December 31, 2024. This is six times higher than ₹10.51 lakh crore in 2014 and more than double the ₹26.54 lakh crore AUM in 2019, the latest data from the Association of Mutual Funds in India (AMFI) showed.
Market growth
Equity and debt markets experience significant growth
Buch also revealed that the equity and debt markets have witnessed significant growth. In FY 2025, ₹14.27 lakh crore was raised through different securities, which is a 21% increase over the previous year. Out of this, ₹3.3 lakh crore was raised from equity markets while ₹7.3 lakh crore was raised from debt markets.