May 01, 2017 2 min read

Investors Can Buy Mutual Funds Through e-wallet- SEBI

SEBI has allowed investing in mutual funds through e-wallet. Know the guidelines about the same to get a better understanding.
Are you an internet freak? Do you enjoy online shopping a lot? Have you ever thought mutual fund investing can be just like making a recharge on your phone? Yes, you heard that right.

SEBI’s new guidelines for e-wallet have made the investing in the mutual fund a very simple process. Now you can invest in a mutual fund via your e-wallet such as Paytm or Pay U. So let’s gain the exact knowledge about the entire concept and the various provisions of the e-wallet investing.

Investors are now permitted to purchase the mutual funds up to Rs.50,000 through e-wallet. As per SEBI’s guidelines and initiative to support the Digital India concept of the Prime Minister Narendra Modi, e-wallet can be used as the medium to buy funds in the mutual fund industry. However, the redemption amount of the mutual fund shall be credited to the bank account of the unitholder only. As per the guidelines of SEBI, the e-wallet issuers will not be allowed to offer any incentives or cash back for holding money in their wallets.

Besides, the asset management companies are allowed to provide the instant online access facility to the resident individual investors in the case of liquid fund investments. The limit in such case would be Rs.50,000 or 90% of the folio value, whichever is lower. However, to provide such facility, AMCs would not be allowed to borrow the funds, and the liquidity has to be provided from the available funds in the schemes. They will have to maintain the mechanism to meet the liquidity demand on time.

So now, when investing has become simple like doing recharge, why not make the most of it by giving it a smart start. The limit of Rs.50,000 is per year for one AMC. This means, if you have an investment in ICICI Prudential Mutual Fund, then you can invest an amount of Rs.50,000 in a year using the e-wallet facility. To purchase more than that, you will have to follow the normal procedure of buying schemes in the mutual funds. This limit has been fixed by SEBI in order to keep a control on the process and analyse how effectively it helps in developing the industry.

For any assistance regarding mutual fund investments and take a wise step towards SIP plans for your future, you must get associated with MySIPonline. Our advisors will surely assist you in buying the best funds of MF in an instant.