A long-held vision of making mutual fund investments accessible to every Indian took a step forward on February 17, as SBI Mutual Fund launched the JanNivesh SIP with a minimum investment of just Rs 250. The initiative, unveiled in the presence of SEBI Chairperson Madhabi Puri Buch, is aimed at deepening financial inclusion and attracting first-time investors, small savers, and workers in the unorganized sector.
Lower SIP amounts are not new — some funds allow investments as low as Rs 100. However, SBI Mutual Fund’s move brings a structured push toward affordability, much like how FMCG companies introduced sachet packaging to make products more accessible.
"By lowering entry barriers and leveraging digital platforms, we aim to attract first-time investors, small savers, and those in the unorganized sector, with SIP starting at just Rs 250," said SBI Mutual Fund MD and CEO Nand Kishore.
SEBI Chairperson Madhabi Puri Buch, who has long championed financial accessibility, called the Rs 250 SIP "one of my fondest dreams." She pointed out that even global investors struggle to believe such a low-ticket investment could be viable. "This has worked because India's financial ecosystem has come together to make it sustainable," she added.
One of the biggest challenges for micro-SIPs has been operational costs. Buch noted that while banks had previously introduced Rs 100 and Rs 500 SIPs, they weren’t widely promoted due to high transaction charges. To counter this, SBI Bank announced it would waive transaction fees for JanNivesh SIPs, ensuring that every rupee invested contributes to wealth creation. "This is the icing on the cake," Buch remarked.
SBI Mutual Fund is targeting urban investors, first-time MF buyers, and digital-savvy customers with this offering. The JanNivesh SIP will be available across multiple platforms, including Paytm, SBI YONO, Zerodha, and Groww.
Paytm has partnered with SBI Mutual Fund for the rollout, with its subsidiary Paytm Services Private Limited facilitating the SIP. Investors can set it up through the Paytm app by selecting their investment frequency (daily, weekly, or monthly), entering PAN details, completing KYC verification, and linking a UPI Autopay mandate.