‘₹250 SIP can generate ₹16 lakh’: Fund manager backs SEBI’s financial inclusion push, says daily wage earners can benefit

Gurmeet Chadha, CIO at Complete Circle, has hailed SEBI and asset management companies (AMCs) for introducing a ₹250 weekly SIP, calling it a significant step toward financial inclusion. Such small-ticket investments, he said, could create long-term wealth for low-income earners.

"A weekly ₹250 SIP can generate ₹16 lakh in 20 years. Daily wage earners, low-income groups can immensely benefit from financial inclusion. Very welcome step by SEBI & AMCs. People mocking it—ask someone who earns ₹500 daily the value of a few lakh even after adjusting for inflation!" Chadha wrote on X on Monday.

He further urged individuals to actively promote the scheme, stating he would personally help enroll those around him. "I will personally try and enroll maximum people around me—domestic help, security guards, gig workers. It’s our responsibility too. Please spread the word," he added.

However, Chadha’s enthusiasm met skepticism from investment manager Amitabh Mohanty, who questioned whether small investors could handle market volatility. "Not mocking Gurmeet, but why can't they do a ₹1,000 SIP monthly...and furthermore, a humble question: can most of them handle drawdown and volatility? It will be the worst thing if they redeem on a bad day. Should everyone come into equity?" Mohanty wrote in response.

Chadha defended the concept, comparing it to "sachetization" — a term used in consumer goods for small, affordable packaging. "Sir, ₹250 weekly for a daily wage earner is different than ₹1,000 monthly. It’s like sachetization (mental accounting). On risk part, I agree—we need to educate better," he replied.

His comments come after SBI Mutual Fund, in the presence of SEBI Chairperson Madhabi Puri Buch, launched the JanNivesh SIP scheme on Monday, allowing investments as low as ₹250 per transaction. This initiative aims to deepen mutual fund penetration among small savers, including first-time investors from rural and semi-urban areas.

Buch called the initiative one of her "fondest dreams" and highlighted its broader significance. "As India grows and wealth gets created, it gets distributed in the hands of everybody, even if it is in a very, very small way. So, to me, this is really the meaning of JanNivesh," she said.

SBI Mutual Fund Managing Director Nand Kishore stated that the goal was to lower entry barriers and attract new investors from the unorganized sector. "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 ₹250," he said.

SBI Chairman CS Setty echoed similar sentiments, linking micro-investments to financial empowerment. "Savings, micro-savings, micro-insurance, and micro-investment are not mutually exclusive. They all will be strengthening the fabric of Indian families' economy," he noted.

Despite some skepticism, financial experts see the ₹250 SIP model as an opportunity to expand financial inclusion, providing a structured way for small earners to invest in equity markets and build long-term wealth.