SEBI Chairman, Mr. Ajay Tyagi took some bold steps to attract investors to invest in mutual funds. Several schemes were introduced and out of which the most prominent was the permission of investment in Mutual funds via e-wallet.
Great news for Indian investors who want to invest in Mutual funds!
Investors can buy mutual funds of Rs.50, 000/year via e-wallet. The repayment of the mutual funds investment in such cases would be made only to the bank account holder who invested in funds.
Although, online services are easily available for the investors to invest in mutual funds but this scheme will help them to invest up to Rs.50,000/year or 90% of the folio value. Whichever value will be lower will be considered on a prime basis.
The sole aim of this scheme was to attract Indian households to utilize their savings in mutual funds and digitalize their money. This step towards the mission of our Prime Minister, Shri Narender Modi to put a barrier on the black money in the country would regulate the capital market and benefit the users as well.
Now the officials who are responsible for issuing the e-wallet would have to seriously work and make sure that no incentives are given to the buyers or sellers who use e-wallet to instantly make payments from one account to another.
Not only this, e-wallet money that is deposited through cash, net banking or debit card would only for considered liable for investments in mutual funds and the banks will not entertain any e-wallet loading via credit card for investments in mutual funds.
The maximum limit of Rs.50,000/year per mutual fund is a kind of financial cover for the investors.
Indian residents can either invest in mutual funds via e-wallets or use online services to invest and save their money via a safer passage.
Payments banks can also be used to make investments in mutual funds. The only clause that users have to make sure is that the payment bank should have taken approval from the Reserve Bank of India.
This move by Chairman of SEBI, Mr. Ajay Tyagi would support our Prime Minister to make Digital India, a better place.
This will be a good news for wallet companies like PAYTM and freecharge as there customers can park their money on mutual funds while using their wallets, giving them extra returns.