SBI Mutual Fund has introduced the JanNivesh SIP scheme, designed to offer Systematic Investment Plans (SIPs) at a small scale, starting at just ₹250.
SEBI Chairperson Madhubi Puri Buch described the launch as a realization of her long-held vision, emphasizing that such investments can significantly contribute to wealth creation for millions of Indian families. The scheme has been launched in partnership with SBI Bank.
On January 22, SEBI released a consultation paper aimed at encouraging distributors to promote low-cost SIPs.
It also suggested offering a ₹500 incentive to first-time mutual fund investors to raise awareness and encourage long-term investments.
Calling this initiative “very special,” the SEBI chief highlighted how foreign investors find it hard to believe that people can invest as little as ₹250 ($3) per month on a global platform.
However, she credited India’s strong financial ecosystem for making this model viable.
One of the biggest challenges in launching micro-SIPs is ensuring their economic sustainability.
Buch noted that while banks and financial institutions had previously introduced SIPs of ₹100 and ₹500, they were not widely promoted due to high operational costs.
To make the ₹250 SIP successful, SEBI ensured that the break-even period remains within two to three years, as a longer timeframe would have discouraged CEOs from supporting it.
