The 'Chota SIP' or micro systematic investment plan of Rs 250 has been introduced to help people from all walks to life to increase their savings potential, said State Bank of India Chairperson CS Setty, while speaking at the NDTV Profit Conclave on Tuesday.
This is not just a monthly or fortnightly SIP as a number of people from rural and semi-urban areas will be doing daily SIPs, Setty said.
Setty's statement comes a day after SBI Mutual Fund, in collaboration with the State Bank of India, launched the Rs 250 investment plan under the ‘JanNivesh SIP' scheme. The state-run lender also announced that it will not charge any transaction fee for the scheme to foster financial inclusion.
While launching the Rs 250 SIP plan, Setty had mentioned that the journey of the scheme will be completely digital.
Notably, the Securities and Exchange Board of India on Jan. 22 proposed the small-ticket SIP worth Rs 250 — half of the existing minimum monthly investment base of Rs 500.
As per the consultation paper floated by the market regulator, an investor using this avenue will be allowed to invest in up to three schemes — one each in a different asset management company.
SEBI also mentioned in its paper that such SIPs will only be offered under the growth option of the plan.
This is being done to encourage more participation in mutual fund investments by making it more accessible for first-time investors, low-income group individuals, and people from remote areas of the country.
In order to increase the accessibility of the scheme, SEBI also proposed to reduce the costs related to it, such as subsidising KYC and other related expenses through the Investor Education and Awareness Fund.
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