India: Sahara Mutual Fund Unveils Rs 10 Micro-SIP
India, May, 06 2009 -
Sahara Mutual Fund is planning to launch a daily systematic investment plan or SIP — Sahara Daily Fund — under which one can invest a minimum sum of Rs 10 (0.2 USD) a day.
The asset management company has filed a draft offer document for the fund with the Securities and Exchange Board of India (Sebi). The aim of the fund is to offer micro-saving schemes to daily wage earners, the fund house said.
The fund will be an open-ended scheme, which means units of the fund can be purchased or redeemed on any business day. The fund will invest in debt and debt-related tools, including money market instruments. The investment objective is to decrease the risk to minimum for the investors. The CRISIL Composite Bond Fund Index will be the benchmark for the fund.
The fund will charge an entry load of 2.25 per cent and an exit load of 1 per cent if redeemed on or before one year from the date of allotment of units and 0.5 per cent if redeemed after one year but on or before two years from the date of allotment of units. No load will be charged if redeemed after two years.
Naresh Garg, chief executive officer of Sahara (India) Mutual Fund, said, “There are several micro-credit schemes available in the country for the poor, but there are hardly any micro-savings schemes available.”
He said the Sahara Daily Fund is in line with the government’s increased emphasis on financial inclusion.
“This scheme is a trend-setter in the mutual fund industry, which provides opportunity to small investors to participate in the economic development and reap the fruits of financial inclusion as intended by the government,” Garg said.
Recently, SBI Mutual Fund launched an equity-based micro-systematic investment plan, called SBI Chota-SIP. The plan, which aimed at low-income households, allows a person to invest in mutual funds with a minimum sum of Rs 100 a month.
Bharti AXA Investment Managers was the first to launch a daily SIP in September 2008. However, the minimum investment under the plan was Rs 300 a day.