There is good news for women investing in mutual funds. Market regulator SEBI is preparing to bring a new provision, in which women investing for the first time will get additional incentives (First-time women mutual fund incentives).
Its purpose is to connect more and more women to the mainstream of investment.
At the program of the Association of Mutual Funds in India (AMFI), SEBI Chairman Tuhin Kant Pandey said, “Financial inclusion is incomplete until women become equal partners in it. Therefore, we are planning to give additional distribution incentives for women investors investing for the first time.”
Why is women’s participation necessary?
Currently, the size of the mutual fund industry is about Rs 57 lakh crore. But the share of women investors in it is still very low. SEBI believes that if women’s participation increases, then new energy will come into the market and the goal of financial inclusion will be achieved.
What is the purpose? What will be the benefit?
SEBI had recently proposed to give incentives to promote new investors coming from smaller cities i.e. Tier-2 and Tier-3 (B30 cities). Now the focus on women investors is part of this strategy.
The advantage of this will be that the mutual fund industry will not only reach new investors, but will also be able to make deep inroads in those areas where the understanding of investment is still limited.
SEBI is reviewing fund schemes
Tuhin Kant Pandey said that SEBI is reviewing the categorization of mutual fund schemes so that investors get transparency and the problem of overlap is eliminated.
Apart from this, the regulator has also abolished the requirement of filing more than 52 reports and notices from mutual fund companies. In the coming months, SEBI will take steps towards making mutual fund regulation easier.
That is, in simple words, this step of SEBI will encourage women to invest and will make the mutual fund industry more comprehensive. Women who started with small amounts will now also be able to move towards financial freedom.