Synopsis
SEBI Chairperson Madhabi Puri Buch emphasized the need to address the root causes of thematic mutual fund scheme proliferation rather than imposing caps. At an AMFI event, she discussed new initiatives aimed at enhancing financial inclusion among diverse investor segments.Key Takeaways
- SEBI aims to address the root causes of thematic fund proliferation.
- New initiatives include Chhoti SIP for easier investment access.
- Financial literacy integrated into school curricula through Tarun Yojana.
- MITRA platform assists in tracking lost investments.
- Efforts are made to enhance financial inclusion.
Mumbai, Feb 21 (NationPress) There is no justification for imposing a limit on thematic schemes, and instead, actions should focus on addressing the underlying causes of their proliferation, stated SEBI Chairperson Madhabi Puri Buch on Friday.
During her speech at an event hosted by the Association of Mutual Funds of India (AMFI), she highlighted that a significant factor contributing to the rise of thematic mutual fund schemes is the arbitrage between traditional schemes and new fund offers.
To tackle this issue, the regulator has an approved consultation plan from its board, though specific details regarding its implementation remain to be confirmed, Buch informed attendees.
While the board is considering measures to address the root causes of proliferation, this proposal has not yet been presented to the mutual fund committee.
At the same event, AMFI introduced three strategic initiatives – Chhoti SIP (Sachetisation of Mutual Funds), Tarun Yojana, and MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) – aimed at enhancing financial inclusion.
The Chhoti SIP offers a systematic investment plan (SIP) starting at Rs 250, making mutual fund investing more approachable, especially for new and underserved investors.
The 'Tarun Yojana' aims to incorporate financial literacy into the school curriculum, providing young learners with essential investment knowledge.
Buch also discussed the MITRA platform, designed to help individuals track their lost mutual fund investments.
This digital platform simplifies investment management by consolidating and organizing fragmented investments, particularly addressing inheritance-related complexities.
The MITRA platform aspires to shift the narrative from "It's too difficult in India" to "It’s so simple in India".
These initiatives align with the ongoing efforts of SEBI and AMFI to democratize mutual fund investments, ensuring broader participation across various societal segments.
