Business Business:�Are you a novice investor who wants to invest in mutual funds but wants to invest at a slow pace? In such a case, you need to invest just Rs 500 per month. But what if you want to invest a smaller amount, say Rs 250 per month or Rs 100 per day?
If yes, then we have good news for you. LIC Mutual Fund plans to launch a systematic investment plan (SIP) with a minimum limit of Rs 100 per day against the current mutual fund limit of Rs 300. The launch is expected in the first week of October, said Ravi Kumar Jha, managing director and vice president of LIC Mutual Fund. This is significant in view of the recent announcement made by Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Bukh regarding SIPs to enable wider participation of retail investors.
The Sebi chief had said earlier this month that the regulator is working with mutual fund companies to develop a new micro-SIP priced at Rs 250 per month. The micro-SIP phenomenon is particularly relevant for companies looking to operate in smaller towns, such as LIC MF, which is looking to expand its presence in cities such as Dehradun, Jamshedpur, Jodhpur and Durgapur. Once the new changes are implemented, daily SIPs will be available for Rs 100, down from Rs 300, monthly SIPs will drop to Rs 250 from Rs 1,000 and quarterly SIPs will require an investment of just Rs 750, down from Rs 3,000.
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