SEBI's Proposal For SIP Of Rs 250 Is A Good Step, But Why Are MF Intermediaries Worried?

SEBI’s proposal for SIP of Rs 250 has met with a pinch of salt from the mutual fund industry stakeholders. Though most mf intermediaries have welcomed the decision saying it’s a step forward for financial inclusion, others have flagged that operational costs is something that needs to be taken care of.

While there are some fund houses which already offer even small ticket size sip of Rs 100, as per Sebi, this Rs 250 SIP will standardise the industry and give everyone the opportunity to participate.

The mutual fund distributors who play a major in getting new people to the mf fold  think that operational costs of mutual funds  just won’t add up for a Rs 250 SIP. Moreover, the time and energy required to bring lower income groups into the mutual funds  will be challenging task to do. 

On a bright side, some distributors also think that this operational costs would be compensated in due course as this step will help increase the base of mutual funds and push it as a grassroot level product.