SBI Announces Zero Transaction Cost For Rs 250 SIP Scheme
The move encourages 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.
The State Bank of India on Monday launched the micro-investment systematic investment plan worth Rs 250, under the ‘JanNivesh SIP’ scheme. The bank also announced that it will not charge any transaction fee for the scheme to foster financial inclusion.
While launching the scheme, CS Setty, the SBI chairperson, mentioned that the journey of the scheme will be completely digital.
The Securities and Exchange Board of India on Jan. 22, proposed a small-ticket systematic investment plan worth Rs 250. This would be half of the current minimum monthly investment base of Rs 500. However, a final circular on this is not out yet.
As per the consultation paper floated by the regulator, an investor using this avenue will be allowed to invest in up to three schemes (one each in a different asset management company).
The regulator has 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 has also proposed to reduce the costs related to it, such as subsidising KYC and other related expenses through the Investor Education and Awareness Fund. Investments under this scheme will primarily operate through digital payment modes like UPI or the National Automated Clearing House.
