The SBI Mutual Fund has launched the 'JanNivesh SIP' scheme which is set to offer micro systematic investment plans (SIPs) starting from Rs 250. Speaking at the launch, SEBI Chairperson Madhabi Puri Buch said that a Rs 250 SIP was "one of my fondest dreams".
SBI Mutual Fund has launched the scheme in partnership with SBI Bank. Buch added that such low-ticket investments could play a crucial role in wealth creation for millions of Indian households.
On January 22, SEBI had released a consultation paper to encourage distributors to promote the low-cost SIP, the SEBI consultation paper has suggested a Rs 500 incentive for educating first-time investors in mutual funds and supporting sustainable long-term investments.
On the significance of this initiative, she noted that even on global platforms foreign investors find it hard to believe that a Rs 250 (approximately $3) monthly investment could be viable. However, Buch noted that this has worked because India's financial ecosystem has worked together to make this model sustainable.
One of the key challenges in launching micro-SIPs has been ensuring economic viability. Buch noted that while banks and financial institutions had previously introduced Rs 100 and Rs 500 SIP products, they were not widely promoted due to high operational costs.
“To make it work, we had to ensure that the break-even period was within two to three years. If it exceeded that, we knew that no CEO would push it,” she said, adding that the entire mutual fund ecosystem, including RTAs (Registrar and Transfer Agents), KRAs (KYC Registration Agencies), and depositories, collaborated to make this feasible.
SBI Bank has announced that it would waive transaction charges for bank transfers related to these micro-SIPs.
“The transaction charges, when compared to the small SIP amount, were significant. By removing these charges, we are ensuring that every rupee invested goes toward wealth creation,” Buch added, calling SBI’s decision “the icing on the cake.” Buch also added that SBI Bank has always been known as the banker of Indians but once this programme is successful, it will also become the investment manager for millions of Indians.
Buch also added that technology plays an important role in making small-ticket investments viable.
“The scale that we are able to achieve in our country, and the fact that it is profitable, is because of the deployment of technology. This is the biggest and best manifestation of how financial inclusion can be made sustainable,” she said.
Buch added that initiatives like ‘JanNivesh’ would help bridge the gap between India and Bharat, ensuring that wealth creation reaches even the remotest corners of the country.
“This is really what we are talking about—an India where wealth is created and distributed among all, no matter how small the amount. JanNivesh is a vision of an inclusive Bharat,” she stated.
Currently, this will be offered only for the SBI Balanced Advantage Fund. The facility will be available on SBI YONO as well as other digital platforms like Paytm, Groww and Zerodha.
Speaking at the sidelines of the event, Paytm's Vijay Shekhar Sharma said that they were excited about the launch and noted that since the beginning of the event they had already seen 550 registrations on their platform. In a release, Paytm said that the company aims to empower Paytm's merchant partners by offering them the opportunity to make their first investment, helping them build long-term wealth for their business.
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