The Hindu Business Line : Now SIP for just Rs 50 thanks to ICICI Pru AMC

Mumbai April 13 The competition in the mutual fund industry is getting hotter with ICICI Prudential Asset Management Company offering Rs 50 per month as the minimum investment amount in its Systematic Investment Plan (SIP).

That will make it the lowest in the industry with Reliance Mutual Fund last week reducing the minimum investment in SIP to Rs 100 per month.

Both fund houses claim the measure will help an increased number of investors to benefit from investing in mutual funds.

ICICI Prudential AMC and Reliance AMC have been pushing each other in the race for maximum assets under management. While ICICI Prudential AMC had maximum assets in February, Reliance AMC was on top in March.

The micro-SIP facility for ICICI Prudential schemes will be available from today. The minimum redemption amount where SIP is available will be Rs 500 and an entry load of 2.25 per cent of the applicable Net Asset Value will be charged. The exit load will be variable as per the amount invested and the duration of the scheme. Units under the Micro-SIP will be issued only under the growth option.

Other mutual fund managers had dubbed the move as expensive for the fund houses as it would increase the cost of servicing the accounts. Also, fund managers said small investments in equity markets will expose the investors to higher risks.

Currently, other fund houses in the industry are offering minimum investments in SIP between Rs 500 and Rs 1,000.

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