SIP With Just Rs 250! Everything About SBI Mutual Fund's New Scheme JanNivesh; Best For Small Savers?

In an attempt to make Systematic Investments Plans (SIPs) more affordable for the investors, the SBI Mutual Fund in collaboration with One 97 Communications, the parent company of fintech platform Paytm, has unveiled 'JanNivesh' scheme, which allows micro SIPs starting at just Rs 250.

The scheme specifically targets first-time investors and small savers from rural and urban regions of the country. It allows the investors to make investments starting at Rs 250 under daily, weekly, and monthly investment plans.
Launched by SEBI Chairperson Madhabi Puri Buch and SBI Chairman Shri C. S. Shetty, this initiative aims to provide widespread access to financial growth.

The simple and affordable entry to wealth creation will be available on the SBI YONO platform as well as other fintech platforms such as Paytm, Zerodha and Groww.

According to the SBI MF website, all the contributions to the JanNivesh SIP will be invested in the SBI Balanced Advantage Fund, which deals with a mix of equity and debt based on the fund managers' outlook.

Describing the latest scheme as one of her "fondest dreams", SEBI Chairperson Madhabi Puri Buch said, "I think this is really what we are talking about, that as India grows and wealth gets created, it gets distributed in the hands of everybody, even if it is in a very, very small way. So, to me, this is really the meaning of Jannivesh".

"This 250 rupees, if and when we discuss this globally or when some foreign investors come and meet us, they can't believe it. It's like a USD 3 investment per month, and you are saying that this is going to be viable. And I said, Yes, that's the whole idea," she added.

Launching micro SIPs comes with the challenge of ensuring economic viability. Buch highlighted that while previously Rs 100 and Rs 500 SIP options were introduced by banks, they struggled to gain traction 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, praising the collaboration of mutual fund ecosystems, such as Registrar and Transfer Agents (RTAs), KYC Registration Agencies (KRAs), and depositories, for turning this dream to a reality.

SBI Bank also announced that the transaction charges for bank transfers related to these micro SIPs will be waived, a move described by Buch as "the icing on the cake". She pointed out that transaction charges, relative to the small SIP amount, were significant, and waiving them ensures that every rupee invested goes toward wealth creation.

Buch further emphasized that the deployment of advanced technology played a crucial role in making small-ticket investments viable.

"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 concluded.