Capital market regulator SEBI is going to take an important step to promote systematic investment among small investors. SEBI has issued a consultation paper, seeking public feedback on the proposed Rs 250 'Small Ticket Systematic Investment Plan (SIP)'. The aim of this initiative is to encourage small investors to invest systematically in mutual funds.

SEBI has proposed that small-ticket SIPs should be limited to only three schemes. While AMCs can offer additional Small Ticket SIPs. During this time, the discounted rates offered by the intermediaries will be applicable only to the first three schemes. Mutual fund participants have agreed to offer discounted rates to help AMCs recover costs faster.

Feedback by 6 February 2025 SEBI estimates that this will help AMCs to bear the cost of small ticket SIPs within two years. Apart from this, a part of the cost will be given as compensation through the Investor Education and Awareness Fund to promote it on a large scale. Investors will have to use National Automated Clearing House (NACH) mandates or Unified Payment Interface (UPI) Auto Pay to fund the Rs 250 SIP, which will be available only under the 'growth' option. Feedback on this proposal can be given by 6 February 2025. Proposal on Mutual Fund Investment SEBI has proposed to limit the annual investment to Rs 50,000 per mutual fund investor. PAN will not be required for this. However, Aadhaar verification will be necessary. Existing investors, other SIP investors or lump sum investors will not be included in this plan. Under this plan, investors will pay 60 installments within 5 years. However, if they wish, they can withdraw funds prematurely. Option of systematic investment can be available in 2 weeks Small ticket SIP will not be offered for debt schemes, sectoral or thematic funds or small and mid-cap schemes. It has been primarily designed for monthly SIP. However, during this time, the option of making systematic investment in 14 days (2 weeks) can also be available.