LIC Mutual Fund is set to introduce a new daily SIP (Systematic Investment Plan) option of ₹100, marking a significant development in line with the Securities and Exchange Board of India’s (SEBI) goal to promote micro-SIPs and encourage broader participation from retail investors.
For new investors who are cautious about starting with mutual funds, SIPs allow investments as low as ₹500 per month. However, LIC Mutual Fund’s new initiative will make it possible to invest as little as ₹100 per day, which is a further reduction from the current daily minimum of ₹300. This new option is expected to be available by the first week of October, as confirmed by Ravi Kumar Jha, Managing Director and CEO of LIC Mutual Fund.
This move aligns with SEBI Chairperson Madhabi Puri Buch’s recent announcement about micro-SIPs, where the regulator is working with mutual fund houses to enable ₹250 monthly SIPs, aimed at expanding investment options for small retail investors.
The micro-SIP initiative is expected to benefit fund houses targeting expansion in smaller cities, including LIC MF’s plans to extend its reach to locations like Dehradun, Jamshedpur, Jodhpur, and Durgapur.
New SIP Limits:
Daily SIP: From ₹300 to ₹100
Monthly SIP: From ₹1,000 to ₹250
Quarterly SIP: From ₹3,000 to ₹750
Financial Experts Praise the Move
Financial experts are welcoming the introduction of micro-SIPs, viewing it as a step toward financial inclusion.
Preeti Zende, SEBI-registered investment advisor and founder of Apna Dhan Financial Services, notes that with just ₹250 a month, individuals can now invest in equity mutual funds. “This opens the door for those who may not have much disposable income, like students, housewives, and retirees, to enter the market gradually and learn how investing works.”
Ravi Jain, co-founder and MD of Blostem, adds that micro-SIPs will play a crucial role in encouraging investors from rural and low-income segments to adopt systematic investment habits, thereby contributing to overall financial inclusion.
