BS EDIT: Sebi’s sachet SIPs: Investments for all

By Business StandardPublished On Jan 28, 2025

What are sachet SIPs?

Sebi proposes Rs 250 SIPs to expand access

Inspired by shampoo sachets’ success in rural markets

Why it matters

Aims to reach underpenetrated regions and low-income investors

Promotes financial inclusion across India

The challenges

High transaction costs for AMCs

Limited resources for smaller funds to publicise and distribute

Sebi’s role

Plans to subsidise initial transaction costs

Long-term subsidies may disrupt the market

Big AMCs vs small funds

Larger AMCs may absorb losses to expand

Smaller funds risk being edged out

The road ahead

Cost reduction is key for success

Industry consultations will shape the final design