25 september 2024 : LIC Mutual Fund is set to launch a new daily Systematic Investment Plan (SIP) option starting at ₹100, in line with the Securities and Exchange Board of India’s (Sebi) initiative to promote micro-SIPs and enhance retail investor participation. If these changes take effect, the minimum for the daily SIP will decrease from ₹300 to ₹100, while the monthly SIP minimum will drop from ₹1,000 to ₹250.
Shweta Rajani, Head of Mutual Funds at Anand Rathi Wealth Limited, commented that the introduction of a ₹100 daily SIP by LIC Mutual Fund is a positive move toward making investing more accessible. She emphasized that this reflects their dedication to helping individuals build wealth through manageable contributions. However, she noted that daily investments are not necessary for achieving good returns; monthly SIPs can effectively manage volatility. According to calculations, the difference in returns between daily and monthly SIPs is minimal—around 0.1 percent—suggesting that most investors may find monthly SIPs sufficient.
Rajani also advised potential investors to consider a few key points before proceeding. It’s important to ensure that the investment aligns with their financial goals, whether short-term or long-term. Additionally, diversifying investments across various categories and market capitalizations can help mitigate risk. Lastly, she stressed the importance of aiming for returns that exceed inflation over time to ensure that the investment grows in real terms.