Mirae Asset Mutual Fund to Lower Minimum SIP to Rs.99 from October 1st in most Schemes
Mirae Asset Mutual Fund announced the reduction of the minimum installment of SIP across most of the schemes from October 1, 2024. The new SIP would be Rs.99 both for monthly as well as quarterly periodicity, but this revision will remain exempt in the case of Mirae Asset ELSS Tax Saver Fund.
Investment Benefits
This mutual fund threshold decrease will make mutual fund investments more accessible to small retail investors and first-timers in the investment world. This means lower entry points so that more people can start investing earlier and generating wealth over time.
While, this change opens more flexibility to the existing investor, so they can easily manage their investments according to their increasing needs of them.
Why Is It Important?
SIPs are the most popular investment option for a common person as they provide an opportunity to invest regularly over time, starting from as low as Rs.99, which can continue to rise over time as a person’s financial condition improves. It would also allow this diversification without asking for some elaborate investment.
Recent data claims that SIP inflows are rising to a new high. In August, SIP contributions witnessed an all-time high when net inflows reached Rs.23,547 crore, overtaking the earlier record of Rs.23,331 crore in July. Moreover, the AUM for SIPs touched an all-time high of Rs.13.39 lakh crore, which rose from Rs.13.09 lakh crore in July.
Even SIP account numbers saw significant growth; where it was 9.34 crores in July, they reached 9.61 crores in August itself, proof of the steadily increasing interest of investors towards systematic investments.
This step by Mirae Asset Mutual Fund is expected to further enhance SIP participation wherein the increased number of first-time investors is expected to boost this upward trend, as this will reduce the barrier to entry for mutual fund investment.
