Mumbai: Lotus India Asset Management Co. Pvt. Ltd said on 17 May it has lowered the minimum investment amount through systematic investment plan (SIP) to Rs100 from Rs500.
“What it gets you is penetration into segments who have not been served at all,” chief executive officer Ajay Bagga said.
This is the third fund to lower SIP threshold to attract very small investors and those who have never invested in mutual funds.
Reliance Capital AMC and ICICI Prudential have already thrown open their SIPs to monthly instalments of a mere Rs100 and Rs50 respectively.
Bagga said lowering the entry level might be a losing proposition in the short-term, but would attract larger investments from smaller investors once they got used to mutual funds.
His fund house has also waived entry load on investments made through SIP route but imposed an exit load of 3% on redemptions within two years.