Many individuals want to invest in the stock market but face challenges due to insufficient funds. To address this issue, SBI Mutual Fund has introduced the ‘Jan Nivesh SIP’ scheme, allowing even ordinary people to invest in the stock market with just Rs. 250 per month, week, or day.
This innovative scheme simplifies the investing process in mutual fund schemes through a systematic investment plan (SIP) with a minimum monthly investment of Rs. 250.
Currently, the minimum investment requirement for SIPs is Rs. 500; however, based on specific schemes, this amount is expected to be reduced to Rs. 100 per month.
The Jan Nivesh SIP is particularly suitable for first-time investors, individuals with small savings, unorganized sector workers, and those from rural areas. It makes it easier for them to invest in mutual funds with a minimum SIP of Rs. 250.
Nand Kishore, MD and CEO of SBI Mutual Fund emphasized that the organization is entering a new phase of providing innovative financial services to a broader audience.
SBI Chairman Srinivasulu Shetty also highlighted their commitment to developing new products, processes, and technologies.
SEBI Chairperson Madhavi Puri Bach expressed that launching SIP schemes with a low investment limit aligns with her vision.
She encouraged parents to utilize this scheme for the financial security of their daughters-in-law, stating that such investment opportunities play a crucial role in wealth creation for millions of people across the country.
She praised mutual fund companies for supporting investors with lower investment options. She noted that a collaborative effort made this initiative possible among the entire mutual fund ecosystem, including RTAs (Registrar and Transfer Agents), KRAs (KYC Registration Agencies), and depositories.
Additionally, this SIP does not require a specific demat account. Only the SBI Balanced Advantage Fund offers an SIP option of Rs. 250.
Investments can also be made through platforms like Paytm, Grow, Zerodha, and SBI YONO, with the flexibility to invest daily, weekly, or monthly. The State Bank of India has announced that transaction charges for these investments will be waived.