Investing through SIPs has become one of the most popular ways for retail investors to participate in mutual funds, but challenges such as missed payments, operational hassles, and emotional reactions during market volatility continue to affect investor behaviour. The market regulator, Securities and Exchange Board of India (SEBI) on Wednesday proposed a framework that could allow salaried employees to invest in mutual funds directly through salary deductions.
Under the proposal, employees would be able to voluntarily opt for SIP deductions from their salary, similar to contributions made towards EPF or NPS. Sebi has proposed permitting employers to deduct money from employee salaries and invest it into mutual fund schemes selected by employees. "The proposal seeks to permit employers to facilitate mutual fund investments on behalf of employees through salary deductions," the consultation paper said.
