![How much do you require?](https://img.etimg.com/thumb/msid-94506639,width-300,height-225,imgsize-6780,resizemode-75/how-much-do-you-require.jpg)
“At Navi, we are building a customer-centric and technology-first organization. This is just another step towards making our products and services simple, affordable, and accessible,” said Sachin Bansal, founder of financial services group, Navi Technologies.
In Navi Liquid, Navi Regular Savings Fund, Navi Flexi Cap Fund, Navi Equity Hybrid Fund, and Navi Large & Midcap Fund, the minimum application amount has been reduced from Rs 1,000 to Rs 10. In Navi Nifty 50 Index Fund, Navi Nifty Next 50 Index Fund, Navi Nifty Bank Index Fund, Navi US Total Stock Market FoF, Navi Nifty Midcap 150 Index Fund, Navi NASDAQ 100 FoF, and Navi Nifty India Manufacturing Index Fund, the amount is reduced from Rs 500 to Rs 10.
The ELSS scheme won’t mirror this change because of regulatory constraints. According to the fund house, the reduction in application amount will be applicable to systematic investment plans (SIP), lumpsum investments, systematic withdrawal plans (SWP), and systematic transfer plans (STP).
Mutual fund advisors say that the reduction in minimum application amount will surely make these products more accessible.
“I don't think it makes the schemes lucrative but it makes it even more accessible for those who are at the very bottom of the income spectrum. To be honest Rs 10 is a very negligible amount and will not make a huge difference in terms of generating a substantial corpus in the long run. This may not add enough value to generate wealth. I feel Rs 100 or 500 are good amounts to start with. Higher minimum amounts will help investors to save and invest a decent amount which can help to generate a substantial corpus in the long run,” says Rushabh Desai, Founder, Rupee with Rushabh Investment Services.
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Subscribe to The Economic Times Prime and read the ET ePaper online.