Investing in mutual funds just got simpler. As part of its digital push, SEBI has allowed fund houses to facilitate transaction in mutual funds of up to Rs50,000 through e-wallets/digital wallets.
e-wallet is an online pre-paid account which can be used to recharge mobiles, buy movie tickets and much more. Paytm, Bhim and Pay U Money are among the e-wallets with the largest user base in India. Such e-wallets are already popular in foreign markets.
In a press release, SEBI said, “Investments up to Rs50,000 per mutual fund per financial year can be made using e-wallets. However, redemptions of such investments can be made only to a bank account of the unit holder.”
The market regulator clarified that e-wallet issuers cannot offer any incentive such as cash back, directly or indirectly, for investing in mutual fund schemes through them.
The e-wallet's balance, loaded through cash, debit card or net banking, can only be used for subscription to mutual funds schemes; balance loaded through credit card, cash back, promotional schemes would not be allowed for subscription to mutual funds, SEBI added.
SEBI further said that Rs50,000 would be an umbrella limit for investment through e-wallet and/or cash, per mutual fund per financial year. This means, investors can invest only up to Rs50,000 in a financial year in mutual funds even with multiple wallets.
