SEBI to Launch ₹250 SIP to Encourage Small Investments in Mutual Funds

The Securities and Exchange Board of India (SEBI) is set to introduce a new initiative to promote small investments in the mutual fund sector by launching a systematic investment plan (SIP) with a minimum investment amount of just ₹250. This initiative aims to enhance accessibility to mutual funds, allowing a wider range of investors to participate in the growing market.

SEBI Chairperson’s Vision for Inclusive Investment

SEBI Chairperson, Madhabi Puri Buch, revealed the plan during a symposium held in collaboration with India's stock exchanges and depositories. Her goal with this new initiative is to remove financial barriers for prospective investors who may have previously found the standard minimum SIP amounts of ₹500 to ₹1,000 prohibitive.

Buch explained that the ₹250 SIP initiative would play a crucial role in increasing participation across a broad spectrum of investors, particularly from smaller income brackets. The move is designed to democratize mutual fund investments, making them accessible to people who have limited capital but wish to benefit from the wealth-creating potential of the markets.

Backing from Industry Leaders

This significant move has garnered support from the Chairperson of the State Bank of India (SBI), Challa Sreenivasalu, who expressed his approval for SEBI’s decision to introduce the ₹250 SIP. Sreenivasalu emphasized the importance of increasing access to mutual funds for the general public, which could substantially contribute to the long-term growth of the Indian economy.

Addressing Governance and Disclosure Standards

In addition to the ₹250 SIP announcement, Buch also highlighted the importance of improving governance and enhancing disclosure standards in the mutual fund industry. She reiterated Securities and Exchange Board of India SEBI’s commitment to transparency and investor protection, assuring attendees that the regulatory body would continue working on reforms to strengthen the sector’s credibility and investor confidence.

Indian Mutual Fund Industry Sees Significant Growth

The Indian mutual fund industry has witnessed remarkable growth in recent years. As of December 31, 2024, the total assets under management (AUM) in the sector reached an impressive ₹66.93 lakh crore. This is a substantial increase from ₹10.51 lakh crore in 2014, marking a six-fold growth. Moreover, compared to ₹26.54 lakh crore in 2019, the AUM has more than doubled in just five years, showcasing the industry’s resilience and strong performance.

Growth in Equity and Debt Markets

Buch further highlighted the exceptional growth in both equity and debt markets. In the fiscal year 2025, a total of ₹14.27 lakh crore was raised through various securities, which represents a 21% year-on-year increase. Notably, equity markets contributed ₹3.3 lakh crore, while debt markets saw ₹7.3 lakh crore raised during this period.

Looking Ahead: A Bright Future for Mutual Funds

The move to launch the ₹250 SIP is seen as a pivotal step in ensuring greater financial inclusion and driving the next phase of growth in India’s mutual fund industry. By reducing the entry barrier for retail investors, SEBI’s initiative will likely pave the way for a more diversified and robust investor base, further boosting India’s position as one of the largest and fastest-growing mutual fund markets globally.

Conclusion

SEBI's introduction of the ₹250 SIP marks a significant step toward broadening access to the mutual fund industry, especially for small and first-time investors. By lowering the entry barrier, SEBI aims to foster greater financial inclusion and ensure that more individuals can take advantage of India’s booming mutual fund sector.

The initiative, supported by key industry leaders like SBI, aligns with the country's growing interest in investing and wealth creation. As the mutual fund industry continues to expand, the ₹250 SIP could be a game-changer, offering new opportunities for millions of Indians to secure their financial futures. With improved governance and transparency measures,

SEBI is setting the stage for a more inclusive and resilient investment environment in India.