Shriram AMC Launches Choti SIP At Rs 250; How Does It Compare Against SIPs From SBI, Aditya Birla, Kotak?

Mutual Funds Investment: Shriram AMC on Monday launched Chhoti SIP to jump into the trend of launching systematic investment plans for small ticket investors. The 'Choti SIP facility was launched by other asset management companies (AMCs) like SBI Mutual Funds, Aditya Birla Sun Life Mutual Fund, etc.

The AMCs have started launching the SIP facility to align with the Securities and Exchange Board of India (SEBI)'s consultation paper launched earlier this year. The SEBI had proposed small ticket SIP starting with a minimum amount of Rs 250 per month for investors.

While the SIP method has been announced by multiple AMCs over the past few months, some have kept the facility limited to certain mutual fund plans, whereas others have maintained certain mandatory conditions. As Shriram Finance is the recent addition to the list of AMCs with Choti SIP option, here's its comparison with Choti SIP plan in SBI, Aditya Birla, and Kotak.

Shriram AMC Choti SIP

Shriram Asset Management Company Limited has introduced the Choti SIP facility for certain mutual funds plans. According to its recent notice, the AMC has introduced the Choti SIP plan in Shriram Multi Asset Allocation Fund from Monday.

With this, investors can now invest in the Shriram Multi Asset Allocation Fund with Rs. 250 monthly. The SIP is restricted to three SIPs (only one each in up to three Asset Management Companies). The SIP has been offered only in growth SIPs.

Aditya Birla AMC

Unlike Shriram AMC, Aditya Birla Sun Life Mutual Fund offers Choti SIP option (Rs 250) in nearly all the mutual fund schemes except debt mutual funds. However, the SIP facility is only available via 'Growth option' feature, which mandates the gradual increase in SIP amount.

The Choti SIP feature is available in all Aditya Birla AMC schemes except debt schemes, sectoral and thematic plans, small-cap and mid-cap schemes under the equity scheme category, according to NDTV Profit.

SBI Mutual Fund

SBI Mutual Fund has launched the scheme under the banner 'JanNivesh SIP'. New investors can start Choti SIP with an investment of Rs 250. The JanNivesh SIP is available only for SBI Balanced Advantage Fund, which is a hybrid mutual fund.

Key Features of Choti SIP

Choti SIPs offer an accessible entry point into the mutual fund market with a minimal investment requirement of Rs 250 per month. This feature makes them appealing to individuals on tight budgets, allowing more people to participate in investing.
By providing a low-cost entry, Choti SIPs promote financial inclusion. They attract a diverse group of investors, including students, young professionals, and those with fluctuating incomes, who might otherwise find it challenging to invest in mutual funds.