Wed Jan 22 18:11:45 UTC 2025: **SEBI Proposes “Sachetisation” of Mutual Funds to Boost Financial Inclusion**
**New Delhi, January 23, 2025** – The Securities and Exchange Board of India (SEBI) unveiled a proposal Wednesday to increase accessibility of mutual funds for low-income groups through a “sachetisation” initiative. The plan introduces a ₹250 small-ticket Systematic Investment Plan (SIP), aiming to make mutual fund investments more affordable and accessible.
The consultation paper suggests limiting the ₹250 SIPs to three per investor across a maximum of three Asset Management Companies (AMCs). While AMCs can offer more than three, discounted intermediary rates would only apply to the first three. Payment methods would be restricted to NACH and UPI autopay.
To offset KYC costs, SEBI proposes a 1 basis point charge on mutual fund schemes for investor education. Distributors and Execution Only Platforms (EOPs) would receive a ₹500 incentive per small-ticket SIP, in addition to standard commission. SEBI anticipates AMCs will recoup their investment within two years.
The proposal comes against the backdrop of significant growth in the mutual fund industry since 2014, with Assets Under Management (AUM) increasing from ₹10 lakh crore to over ₹68 lakh crore, and the number of unique investors rising from 1.7 crore to 5.18 crore. However, SEBI believes that further expansion is necessary to ensure financial inclusion for all segments of society.
The regulator is seeking public comments on the proposals until February 6th.
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