SEBI Plans To Curb Proliferation Of Thematic MF Schemes: Chairperson Madhabi Buch

Mumbai: There is no reason to put a cap on the thematic schemes and something should rather be done to curb the root cause of such proliferation, SEBI Chairperson Madhabi Puri Buch said on Friday. 

In her address at an event by the Association of Mutual Funds of India (AMFI) here, she said a root cause of the proliferation of thematic mutual fund schemes is the arbitrage between normal schemes and new fund offers.

To curb such proliferation, the regulator has a consultation plan approved by its board. However, further developments on this are yet to take place, Buch told the gathering.

While the board has plans to curb the root cause of proliferation, the same proposal plan has not been brought to the mutual fund committee yet.

At the event, the AMFI launched three strategic initiatives – Chhoti SIP-Sachetisation of Mutual Funds, Tarun Yojana, and MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) to boost financial inclusion.

The Chhoti SIP introduces a Rs 250 systematic investment plan (SIP), designed to make mutual fund investing more accessible, particularly for first-time investors and those from underserved segments.

The ‘Tarun Yojana’ seeks to integrate financial literacy into the school curriculum, equipping young minds with a foundational knowledge of investment.

Buch also spoke about the MITRA platform, aimed at tracking the lost mutual fund investments.

The digital platform is designed to simplify investment management by consolidating and organising scattered investments, particularly solving inheritance-related confusions of securities.

MITRA platform aims to change this perception from "It's too difficult in India" to "It’s so simple in India".

These initiatives align with the SEBI and the AMFI's ongoing efforts to democratise mutual fund investments, ensuring wider participation across diverse segments of society.