‘Choti SIP’ needs time to gain traction: SEBI ED Amarjeet Singh

The small or Choti SIP plan allows investors to start systematic investments with as little as Rs 100 a month, aiming to draw first-time and small savers, particularly from semi-urban and rural areas, into mutual funds.

SEBI Executive Director Amarjeet Singh said the ‘Choti SIP’ scheme, introduced in March 2024 to encourage small-ticket mutual fund investments, is still in its early days and agreed that it will take time to pick up.

Answering a question at a press briefing after the SEBI board meeting on September 12, Singh admitted that initial numbers are modest. “It’s a relatively new initiative. It takes time, you know. We are in touch with the industry and you are right, numbers are not that impressive. But it will take some time and we are in continuous dialogue with stakeholders,” he said.

The small or Choti SIP plan allows investors to start systematic investments with as little as Rs 100 a month, aiming to draw first-time and small savers, particularly from semi-urban and rural areas, into mutual funds.

In a recent conversation with Moneycontrol, AMFI Chief Executive Venkat Chalasani had also noted that a promotion mechanism for Chotti SIP from the mutual fund body, similar to the mutual Fund Sahi hai campaign will be on the radar in the near future.

AMFI and SEBI announced the launch of Rs 250 SIP or Choti SIP in February 2025 as a means to make it easier for small investors and first-time participants to enter the mutual fund space.

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