Securities and Exchange Board of India (SEBI) was widely expected to discuss and allow mutual fund investments through e-wallets in its board meeting on January 14. It was widely anticipated that it would allow investors to buy mutual funds units worth Rs 50,000 through their digital wallets. The default limit on e-wallets is Rs 20,000. For KYC compliant customers this limit is Rs 1 lakh. However, the topic was not taken up for discussion in the board meeting in Jaipur.
Mutual fund industry is highly regulated in India. It can boast of tougher compliance standards than some developed markets. Therefore, it is a good place to start for the investors. It offers them an opportunity to invest in a diversified portfolio with lower risk and an assurance of professional management.
