New Delhi, July 14 -- Bite-sized mutual fund plans for first-time investors remain a speck in the retail universe despite a regulatory push, as fund houses and distributors remain cagey about the viability of the new product.
In February, the market regulator flagged off Rs.250 micro-SIPs (systematic investment plans) to widen India's investor base and promote financial inclusion. However, just 9,000 investors signed up for the scheme until June end, a Mint analysis of industry data showed, paling in comparison to active SIPs of 91.8 million excluding such micro investments. The reason: small ticket sizes and low distributor commissions.
"Since the ticket size is smaller, typically, the revenue per case becomes lower," said Ganesh Mohan...
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