- India’s first mutual fund platform to introduce Rs. 100 Daily SIP
- Aims to register 1,00,000 daily SIPs by end of FY23
- Conceptualised specifically for Tier 2, Tier 3, and Rural India (Bharat)
- The initiative is in collaboration with ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Tata Mutual Fund
Mutual fund distribution platform, ZFunds, today announced the launch of ‘Rs. 100 Daily Mutual Fund SIP’ for people of Bharat. The initiative is launched in collaboration with ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Tata Mutual Fund. 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 daily basis instead of having a monthly income. The investment amount as low as Rs. 100 will help daily wage earners and small business owners to start their investment journey from their daily income. Within a short span of time, ZFunds has registered more than 3,000 daily SIPs on its platform and aims to reach 1,00,000 daily SIPs by end of FY23.
Commenting on the launch, Manish Kothari, Co-founder and CEO, ZFunds said, “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. 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 Rs 100 daily SIP so that real financial inclusion can take place in tier-2, tier-3 cities and rural India.”
“The concept is similar to how Indian households save money via daily piggy bank. Through this initiative, we are encouraging people to channelize their piggy bank savings into mutual fund. Innovation will help keep the cost low and ensure that the transaction occurs every day with zero friction,” 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 low ticket size of Rs 100 will attract low-income groups and businesses having daily cash flows and bring them into the gambit of formalized investments.”
Speaking on the launch, Naveen Gogia, Executive Vice President, Co-Head- Sales & Distribution, HDFC AMC said, “A small SIP investment done consistently can help realize large dreams of tomorrow. This is a great initiative by ZFunds especially for the lower
income strata across India to bring in real financial inclusion. At HDFC Mutual Fund, SIP investment is one of the core values of our investment philosophy and this initiative of ZFunds will go a long way in jointly reaching our mission of being the wealth creator for every Indian.”
Rs. 100 daily SIP service will be enabled through ZFunds experts in tier-2, tier-3 cities and rural India. The innovative solution is backed by technology to reach the length and breadth of Bharat. In CY 2021, ZFunds registered a monthly SIP book of Rs. 4 crs and assets under management (AUM) in excess of 350 crs.
