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Mutual fund distribution platform, ZFunds, Tuesday announced the launch of 100 daily mutual fund SIP, which is conceptualised specifically for people residing in rural areas and small towns.

The initiative is launched in collaboration with ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Tata Mutual Fund, ZFunds said in a statement.

Also, the company is in talks with several other fund houses to enrich its product suite.

Through this offering, ZFunds aims to address the need gap existing in tier-2, tier-3 and tier 4 cities where people earn on a daily basis instead of having a monthly income.

The investment amount as low as 100 will help daily wage earners and small business owners to start their investment journey from their daily income, ZFunds said.

Within a short span of time, ZFunds has registered more than 3,000 daily systematic investment plans (SIPs) on its platform and aims to reach 1 lakh daily SIPs by end of FY23.

In the calendar year 2021, ZFunds registered a monthly SIP book of 4 crore and assets under management (AUM) in excess of 350  crore.

"It is a path breaking concept to make mutual funds accessible for the people of Bharat. The initial concept of SIP was thought out keeping salaried people in mind who get paid once a month. While the option of daily, weekly, and fortnightly SIPs does exist, the reality is not many people opt for it," Manish Kothari, Co-founder and CEO at ZFunds said.

"This is even though 54 per cent of non-metro India is self-employed and usually get paid on a daily basis and typically prefer to invest via chit funds. We have introduced 100 daily SIP so that real financial inclusion can take place in tier-2, tier-3 cities and rural India," he added.

Abhijit Shah, Head Marketing, Digital and Customer Experience, ICICI Prudential AMC said, “We are very happy in partnering with ZFunds to make MFs accessible to every household in India. Daily SIPs with a low ticket size of 100 will attract low-income groups and businesses having daily cash flows and bring them into the gambit of formalized investments."

Naveen Gogia, Executive Vice President, Co-Head- Sales & Distribution, HDFC AMC said the initiative by ZFunds especially for the lower income strata across India to bring in real financial inclusion. 

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