Many individuals struggle to invest in mutual funds each month due to limited funds after basic expenses. SEBI has proposed an EPF-style employer contribution to mutual funds on behalf of employees, enabling them to invest in a disciplined manner.
Under the proposal, employers can make payments on behalf of employees, allowing them to select mutual fund schemes and investment amounts. The employer can deduct the amount every month while processing payroll and pass it on to the respective AMC.
The AMC will credit the equivalent units of the MF scheme to the employee's MF folio account, working like a Systematic Investment Plan (SIP). Dividends and any other payments from the mutual fund scheme will be credited directly to the employee's bank account.
Employees can opt for this arrangement with their employers, enabling them to save and invest money in mutual funds to achieve their financial goals in a disciplined manner.
