New Delhi, May 27 -- The Securities and Exchange Board of India (Sebi( has floated a proposal allowing employers to deduct a portion of employee salaries and invest it directly into mutual fund units on their behalf.

The idea draws from a model already familiar to parts of the industry.

Swarup Mohanty said, "What this can potentially do is encourage people to gradually convert a portion of their income into investments. Organizations can run internal campaigns to educate employees on how setting aside even a small part of their compensation in investment form can build long-term wealth."

The behavioural logic behind the proposal is strong.

Vishal Dhawan, founder and chief executive of Plan Ahead Wealth Advisors, pointed to what he cal...