Sebi chief Madhabi Puri Buch announced in a recent event that investors will soon be able to start their SIPs (Systematic Investment Plan) with an investment of just Rs 250.
“We are on the way of Rs 250 SIP becoming a reality,” she said at a CII (Confederation of Indian Industry) event on “Regulatory Landscape: What is needed for Viksit Bharat?” at the Financing 3.0 Summit in Mumbai.
The head of the market watchdog took a rather interesting and off-the-wall tone while explaining how small investors could participate in wealth creation by taking the example of Starbucks coffee. With investment size as low as roughly $3, people can't even think of buying a coffee, she said. “Imagine with less than $3 a month, people will be able to participate in the wealth creation of our nation and that is our path towards a 'Viksit Bharat'," she further added.
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Mutual Fund SIP accounts reached an impressive figure of 9.34 crore by July 2024. During the same period, the total amount collected through SIPs surged to Rs 23,332 crore. Despite this strong inflow, multiple reports indicated that outflows from SIPs also remain at a significant level.
Interestingly, just earlier this year, Sebi had warned about "froth" building in certain segments of the market, particularly small-cap and large-cap. Even now, as 'financialisation of savings' continues to remain a dominating trend, analysts are worried about exorbitant valuations of some sectors that are attracting more investors to put their money in the market.
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For September, investors will be keenly eyeing the Federal Reserve's interest rate decision as expectations of a cut continue to linger. The month started with an euphoric tone buoyed by the same factor which pushed markets to fresh highs on September 2.
