Mumbai, Feb 18 (IANS) The newly launched ‘Chota SIP’ of Rs 250 aims to help people from all backgrounds build their savings, State Bank of India (SBI) Chairperson C.S. Setty said on Tuesday.
The initiative is designed to make systematic investment plans (SIPs) more accessible, especially for those in rural and semi-urban areas, Setty said while speaking at the NDTV Profit Conclave.
“While traditional SIPs are typically done on a monthly or fortnightly basis, many investors in smaller towns and villages will contribute daily under this scheme,” he stated.
The announcement comes a day after SBI Mutual Fund, in partnership with the bank (SBI), introduced the Rs 250 investment option under the ‘JanNivesh SIP’ scheme.
To promote financial inclusion, the bank has also decided not to charge any transaction fees for this plan.
“The entire process of investing in the Rs 250 SIP will be digital, making it easier for people to participate,” Setty mentioned.
This move aligns with the Securities and Exchange Board of India’s (SEBI) recent proposal to introduce small-ticket SIPs at half the existing minimum investment of Rs 500.
According to SEBI’s consultation paper released on January 22, investors will be allowed to allocate their money into up to three schemes, each from a different asset management company.
These SIPs will only be available under the growth option, ensuring long-term wealth creation.
“The main objective behind this initiative is to encourage first-time investors, individuals from low-income groups, and those in remote areas to start investing in mutual funds,” Setty said during the launch on February 17.
To make it even more accessible, the SEBI has proposed lowering associated costs, such as subsidising KYC and other expenses through the Investor Education and Awareness Fund.
To ensure that users can manage their investments through platforms they are already familiar with, the service will be available on popular digital platforms such as the SBI YONO app, Paytm, Groww, and Zerodha.
–IANS
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