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A PAN Card Deal

Sahara MF looks to make the micro-Sip a success

As a consequence of its decision to pursue even the lowest collections of Rs 10 on a daily basis from the lowest income groups, Sahara Mutual Fund is looking to remove all obstacles from its path to make the lives of investors easier. And the biggest hurdle is the permanent account number (PAN) card.

With the daily wage earners forming a huge part of the population and their income coming in on a day-to-day basis, the fund is eyeing a windfall provided it can iron out all the cumbersome processes, and that includ not just the PAN card, but also  the know-your-customer (KYC) norms.

Targetting of the lowest income groups would become easier for the fund if it can make the sourcing of a PAN card easier for all people who are eyeing investments of this nature. The whole process takes a month and costs about Rs 50, thereby making it difficult and perhaps even meaningless for a low-scale investor to think of approaching a mutual fund (MF).

While this scheme will lead to a jump in collections, at least thats what the fund is hoping for, the initiator of the whole process, was the Securities and Exchange Board of India (SEBI) rule that prohibits investment in MFs unless a PAN card number is provided.

Sahara MF is looking to cover all angles. While it is hoping that the SEBI waives the PAN card rule, but if that doesn't happen, the fund is moving purposefully to make its micro systematic investment plan (SIP) a success – with or without the rule.