Whalesbook
Axis Mutual Fund has introduced a pioneering 'Micro-Investment' feature allowing investors to begin mutual fund investments with as little as ₹100 per scheme. This initiative, available for monthly SIPs in eligible schemes, targets first-time and small-scale investors, offering practical exposure to portfolio management, risk, and diversification through hands-on learning.
Axis Mutual Fund has launched an industry-first 'Micro-Investment' feature designed to make mutual fund investing more accessible, especially for new and small-scale investors. This new facility allows individuals to start investing in mutual fund schemes with a minimal amount of ₹100 per scheme. The feature is currently operational for monthly Systematic Investment Plans (SIPs) and applies to eligible mutual fund schemes.
The primary goal of Micro-Investment is to facilitate learning by doing. It helps investors grasp fundamental financial concepts such as risk, returns, and diversification through practical engagement. Investors can initiate this feature via the Axis Mutual Fund website, selecting multiple schemes to build a diversified portfolio and monitor its performance over time. This approach aims to empower investors by reducing the initial financial risk and allowing them to gradually increase their investment as their confidence grows.
Axis Mutual Fund emphasizes that the initiative is built on three core pillars: Accessibility (low starting amounts), Educational value (learning through experience), and Empowerment (scaling investments gradually).
Impact
This feature is expected to significantly increase retail participation in the mutual fund industry by lowering the entry barrier. It promotes financial literacy by enabling hands-on experience with investment concepts. This could lead to a broader and more informed investor base in India. Rating: 6/10.
Difficult Terms Explained:
Mutual Fund: A type of financial vehicle made up of a pooled amounts of money that collects investors and invests it in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who actively choose the securities of the fund.
Systematic Investment Plan (SIP): A method of investing in mutual funds on a regular, periodic basis (e.g., monthly). It is a disciplined approach to investing that helps in averaging out the purchase cost over time, known as rupee cost averaging.
Diversification: A risk management strategy that mixes various investments within a portfolio. The rationale behind this technique is that a portfolio diversified across different kinds of assets will, in the course of trading, yield a higher return than a portfolio that consists of limited investments.
Portfolio Management: The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
