Gift-giving is a common practice on various occasions, but choosing the right gift can be challenging. SEBI has proposed introducing gift cards for mutual fund subscriptions, allowing individuals to purchase a gift card and use it for gifting, just like traditional gifts. The recipient can utilise the gift card for subscribing to mutual fund units, improving financial inclusion by attracting new investors.
The process involves purchasing a gift card from a prepaid payment instrument (PPI) issuer, making payment through electronic bank transfer or UPI, and selecting a specific mutual fund scheme. The gift card has a minimum validity period of one year and can be redeemed by the recipient against any mutual fund scheme of their choice. If the recipient doesn't redeem the gift card, the PPI issuer will refund the amount to the giver's verified bank account.
SEBI has invited comments from the public on its proposal by 14th April 2026. Gifting mutual funds is an excellent option as it contributes to the recipient's financial goals and helps in achieving them.
