Systematic investment plans that allow you to invest Rs.50 or Rs.100 every month in a mutual fund (small amounts compared to Rs.500/month for the lowest priced SIPs that were available till now) are called Micro SIPs.
1) It was started so that economically weaker sections can also participate in equity markets and can become part of it.
2) Investors were exempted from complying with Know Your Customer(KYC). Instead, Micro SIP investors had to only submit a photo identity document and address proof copy.
3) SEBI has withdrawn the requirement of PAN for SIPs that do not exceed the amount of Rs.50,000 in a financial year.
4) It induces a habit of investing on a regular basis.
5) It makes them more aware and knowledgeable and this scheme is a step to ensure that such section of the population can also realize their dreams.