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Buy a Mutual Fund using your Digital Wallet Now!

Buy a mutual fund using your digital wallet

Investments are extremely popular amongst working/salaried individuals and that they will be allowed
to buy mutual funds upto Rs. 50,000 using their digital wallets. SEBI has long approved of this amazing opportunity opening up to the investors by using digital wallets.

Investors will be allowed to make a buy worth Rs, 50,000. Isn’t this great news?

The order notes clearly mentioned how the savings can be used conveniently using the digital wallet. It is a good way to channelize household savings and inject into the capital market in an effort to promote digital payments.  The mutual fund market is extremely volatile and needs to be regulated well. Hence, SEBI had to intervene.

SEBI Guidelines for Mutual Fund Investments:

  • Undoubtedly, investments can be conveniently made through e-wallets, but redemption is agreed into the bank account of the investor only.  According to the SEBI guidelines for investing in Mutual Funds, no incentives can be served as cashback, coupons etc. for any investments into the mutual fund scheme.
  • Besides, the digital wallet balance (added via debit/credit cards) can alone be used for mutual funds subscription.
  • None of the cashback or promotional credit can be used to subscribe to mutual funds.
  • The threshold of Rs. 50,000 is the maximum limit to invest using a digital wallet, according to SEBI directives.

How do asset management companies take care of mutual funds online?

Also, asset management companies have been allowed instant online access to individuals in liquid investment plans. The limit would be up to Rs 50,000 or 90% of the folio value, whichever suits. To provide the facility, AMCs would like not like to borrow. Liquidity is provided out of the available funds and AMCs will follow to manage liquidity requirements. According to a recent study, asset management companies (AMCs) manage assets worth Rs 18.3 lakh crore and mutual fund accounts of about 5 crore.

This facility will be used for mutual funds who have major tie-ups with payment banks after important approvals from the Reserve Bank of India. Also to quote, any scheme that guarantees this scheme will deduct Rs.50000 immediately.

We are aware about how Mutual Funds can hugely support a large number of investors to store their money in the form of stocks, bonds and money market instruments

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