BT500: 'Rs 250 SIP is easier said than done, but doable,' says SBI MF’s DP Singh

Since the numbers of Systematic Investment Plan (SIP) inflows in November 2023 came to a record high of Rs 17,000 crore, there has been a trend from the last 15 days where everyone is talking only about the SIPs, said DP Singh, Deputy MD and Joint CEO of SBI MF.

“I was talking to a wealth manager recently, whose ticket size used to be in the 10 to 50 crore category, and he shared that now they have started to get the tickets of Rs 10 lakhs. So, on the one side, we are talking about Rs 250 SIPs, and on the other side, we are talking about Rs 10 lakh minimum SIPs, so the country is giving such a diverse number, and now we have to see how to grow it further. I think it is a great journey which has just started, and I think these SIP stories are global success stories,” he said while speaking at BT500 Wealth Creators Summit about his take on the growth of Mutual Funds investment in India.  

Talking about Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch’s pitch of starting a minimum SIP from as low as Rs 250, Singh said that it is easier said than done. “Getting so many people with Rs 250 SIP is a little difficult because today, the operational cost is very high. For any transaction of SIP, the minimum cost is Rs 50 to Rs 70 and on an SIP of Rs 250, the earnings will not be more than Rs 8 to Rs 9 per year. This will need some compensation from the government and regulators on KYC, and once that happens, it is absolutely doable.”

He further shared his thoughts on which Mutual Funds plan to choose from as there are more than 1500 schemes available in the market. Singh said, “The hybrid journey is very important to understand which scheme one should invest in as there are so many great schemes to choose from; however, some ‘tadka’ of Equity is a must. That is definitely required for everybody.”

Also Read: India is a fantastic story from wealth creation perspective, says high powered CEO panel