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For decades, Indian employees have been accumulating their retirement savings through mandatory deductions like EPF and voluntary contributions to NPS. Now, the Securities and Exchange Board of India (SEBI) has come up with a new framework that could offer the same convenience in mutual fund investing through a Payroll SIP Plan. The idea is that employers should be allowed to deduct a fixed SIP amount from the salary of an employee and invest it in mutual funds before the salary reaches the employee’s bank account. The idea is similar to the discipline of EPF and NPS contributions but it also promotes long term wealth creation through SIPs (Systematic Investment Plans).


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