SEBI Chairperson Madhabi Puri Buch emphasized the need to address the root causes behind the proliferation of thematic mutual fund schemes, rather than imposing caps. Speaking at an event hosted by the Association of Mutual Funds of India (AMFI), Buch pointed to the arbitrage between normal schemes and new fund offers as the primary driver of scheme proliferation.
SEBI has a consultation plan approved by its board to tackle this issue, although no further developments have been reported. Buch noted that while the board has identified the root cause, the proposal has not yet been presented to the mutual fund committee.
During the event, AMFI launched three strategic initiatives to enhance financial inclusion. The “Chhoti SIP” introduces a $3 systematic investment plan (SIP) to make mutual fund investing more accessible, particularly for first-time investors and underserved segments. The “Tarun Yojana” aims to integrate financial literacy into school curricula, providing young minds with foundational investment knowledge.
Buch also highlighted the MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) platform, designed to track lost mutual fund investments and simplify investment management. The digital platform consolidates and organizes scattered investments, addressing inheritance-related securities issues and making investment management simpler in India.
These initiatives reflect SEBI and AMFI’s ongoing efforts to democratize mutual fund investments and ensure wider participation across diverse segments of society.
