Rs 250 SIP: Rs 250 monthly in JanNivesh scheme can give you Rs 17 lakh, Rs 1.63 cr in these scenarios; check details

SBI Mutual Fund and State Bank of India have collaboratively introduced JanNivesh SIP, a versatile SIP option starting at only Rs 250 with daily, weekly, and monthly investment plans available. This initiative aims to empower first-time investors and small savers residing in rural, semi-urban, and urban areas to participate in mutual fund schemes.

Initially, investors can utilise this feature to invest in the SBI Balanced Advantage Fund, a fund that strategically allocates investments between equity and debt based on the fund managers' discretion.

By investing a monthly SIP of Rs 250, investors have the potential to amass a significant corpus of Rs 17.30 lakh over a period of 30 years, assuming an expected rate of return of 15%.

Here's how

Investors can expect significant growth in their savings by utilizing systematic investment plans (SIP) in mutual funds. For instance, with a 15% expected rate of return, a monthly SIP of Rs 250 over 30 years can lead to a corpus of Rs 17.30 lakh.

Extending the investment period to 45 years can result in a corpus of Rs 1.63 crore. However, it is important to note that these figures do not account for inflation, which could potentially reduce the overall value of the corpus.

Alternatively, at a lower expected rate of return of 10%, a monthly SIP of Rs 250 over 30 years could yield a future value of Rs 5.65 lakh. By consistently investing over time, investors have the opportunity to build a substantial nest egg for their financial goals.

Investors in mutual funds have the option to utilise the future value formula to ascertain the future value of their SIP investments. This formula offers an approximate estimation of how the monthly investments will appreciate over a set timeframe.

Future Value (FV) = P [ (1+i)^n-1 ] * (1+i)/i

In this formula:

FV: Future value or the total amount received upon maturity.
P: Amount invested through SIP.
i: Compounded rate of return.
n: Duration of investment in months.

Other smallcap funds

Small-cap mutual funds have experienced significant losses this year. As of February 11, the average small-cap fund has decreased by more than 13% since the start of the year. However, long-term investments have yielded favorable returns.

Quant Small Cap Fund: The Quant Small Cap Fund has demonstrated strong performance over the past 20 years, delivering an annualised SIP return of 16.87%. With assets under management (AUM) amounting to Rs 25,183 crore and a net asset value (NAV) of Rs 220.7571, this fund has proven to be a reliable option for investors.

Benchmarked against NIFTY Smallcap 250 TRI, the fund has yielded an impressive annualised return of 36.92% since its inception in November 1996. Despite an expense ratio of 1.63%, the Quant Small Cap Fund offers a minimum SIP investment of Rs 1,000 and a minimum lump sum investment of Rs 5,000.

For investors looking to grow their wealth over the long term, a monthly SIP investment of Rs 250 over a 20-year period would result in a significant return. With an annualised return of 16.87%, a total investment of Rs 60,000 would have grown to Rs 4,96,217 by the end of the investment period.

Bank of India Small cap fund: It has Rs 1,556 crores worth of assets under management (AUM) as on 31/12/2024 and is small fund of its category. The latest Net Asset Value (NAV) of Bank of India Small Cap Fund Direct-Growth as of 17/02/2025 is Rs 43.93. The fund has an expense ratio of 0.54%, which is close to what most other Small Cap funds charge. Bank of India Small Cap Fund Direct-Growth returns of last 1-year are 3.69%. Since launch, it has delivered 27.20% average annual returns. The fund has doubled the money invested in it every 4 years.

Bank of India Small Cap Fund Returns

1-Year 3.8%            
3-Year    17.86%
5-Year    29.16%
Since Inception 27.18%    

Kotak Small Cap Fund: The Kotak Small Cap Fund has shown impressive performance over the past 20 years, with an annualized SIP return of 16.87%. With an AUM of Rs 16,450 crore and a NAV of Rs 227.6630, this fund has proven to be a strong performer in the market.

Benchmarked against NIFTY Smallcap 250 TRI, the fund has consistently delivered an annualized return of 16.92% since its inception in February 2005. With an expense ratio of 1.65%, investors can start with a minimum SIP and lump sum investment of Rs 100 each.

For example, a monthly SIP investment of Rs 250 over a 20-year period would have grown to an impressive Rs 4.96 lakh, showcasing the potential for long-term growth with the Kotak Small Cap Fund.