SBI MF Launches Rs 250 SIP for Wider Reach

Mumbai, Feb 17 (PTI) Asset management company SBI Mutual Fund on Monday launched a systematic investment plan (SIP) aimed at democratizing access to the product.

An investor can invest as low as Rs 250 per transaction under the JanNivesh SIP scheme, which was launched in presence of Sebi Chairperson Madhabi Puri Buch.

Investors typically put Rs 500 in SIP, which could go down to Rs 100 depending on the scheme in which money is being put. With the aim of deepening the MF reach, the lower SIP of Rs 250 was considered, which is akin to the idea of sachetisation effectively used by consumer goods companies.

"By lowering entry barriers and leveraging digital platforms, we aim to attract first-time investors, small savers, and those in the unorganized sector, with SIP starting at just Rs 250," SBI Mutual Fund's managing director and chief executive Nand Kishore said.

"As we transition into a new phase of financial inclusion, innovation and inclusivity are essential. Our focus is on developing products, processes and technologies that make inclusivity seamless and effective," SBI chairman C S Setty said at the launch.

The fund house is targeting the product at first time MF investors, urban investors, unorganized sector workers and the digitally proficient investors.