The Indian capital market regulator, SEBI (Securities and Exchange Board of India), is preparing to introduce a new combo product that combines Mutual Funds with Term Life Insurance. SEBI Chairperson Madhabi Puri Buch shared this news on Friday at an ICAI (Institute of Chartered Accountants of India) event.
SEBI will soon release a Consultation Paper on this proposal.
Why is the Mutual Fund + Term Life Insurance Combo Product Important?
- Boosting Financial Inclusion: SEBI aims to increase the number of investors, especially from rural areas and small investors.
- Low-Cost Insurance Benefit: This plan will include life insurance with the Mutual Fund SIP at minimal extra cost.
- Focusing on Rural Investors: SEBI points out that while the number of small investors is rising, their Systematic Investment Plan (SIP) amounts are very low.
SEBI wants to connect more people to Mutual Fund investments through this product.
Also Read: Mutual Fund for Retirement Planning
SEBI’s New ‘Pay Right’ Initiative: A Big Step to Prevent Digital Frauds
SEBI is also taking another significant step to enhance investor security.
Under the ‘Pay Right’ Initiative : UPI (Unified Payments Interface) transactions will become more secure. KYC (Know Your Customer) verification will be strengthened. Investors will be able to easily check if they are sending money to the correct UPI ID.
This initiative will help prevent digital frauds and provide investors with secure transactions.
Also Read: SBI Mutual Fund: How to Get ₹1.5 Crores from a ₹1000 SIP
Conclusion
SEBI’s new Mutual Fund + Term Life Insurance product offers investors a chance for better financial planning. Additionally, the Pay Right Initiative will make digital transactions safer.
Are you interested in investing in this new SEBI product? Share your thoughts in the comments!