Rs 250 SIP JanNivesh SBI Mutual Fund State Bank of India launch special systematic investment plan to be available on Yono app
Rs 250 SIP News: SBI Mutual Fund and State Bank of India (SBI), the country’s largest lender by assets, on Monday announced the launch of JanNivesh, a special Rs 250 systematic investment plan (SIP) aimed at democratising wealth creation and promoting financial inclusion. The initiative is aimed at enabling first time-investors and small savers, especially in the rural, semi-urban and urban parts of the country, to park their funds in the country’s mutual fund (MF) space.
The Rs 250 JanNivesh SIP will be available on the bank’s mobile app, Yono, as well as ither fintech platforms such as Paytm, Zerodha and Groww, according to a joint statement.
The Rs 250 SIP initiative was unveiled in the presence of SEBI Chairperson Madhabi Puri Buch and SBI Chairman CS Setty.
Benefits of Rs 250 SIP
SBI Mutual Funds and State Bank of India listed three major benefits of the special SIP:
- Low Cost Investment: The JanNivesh SIP offers flexible SIP options starting at Rs 250, with daily, weekly and monthly investment plans, the statement read. The low entry threshold is aimed at ensuring ease of investment for small retail investors.
- Digital Accessibility: The availability on popular platforms such as Yono will ensure that investors can access and manage their investments easily.
- Cost-effectiveness: The JanNivesh SIP is designed specifically keeping in mind the aspect of cost-effectiveness. This is aimed at ensuring sustainable growth for all stakeholders.
“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,” said Setty.
Through the JanNivesh SIP on our Yono app, aim to empower more customers with innovative investment opportunities besides promoting financial inclusion, he said.
By lowering entry barriers and leveraging digital platforms, we aim to attract first-time investors, small savers, and those in the unorganised sector, with SIPs starting at just Rs 250, said nand Kishore, MD and CEO of SBI Mutual Fund.
Rs 250 SIP Target Investors
According to SBI and SBI Mutual Fund, the target investors of the Rs 250 SIP are: first-time investors, urban investors, unorganised sector workers and digitally proficient investors.
Remember, it was First Mentioned in SEBI Consultation Paper?
The Rs 250 is in line with capital market regulator SEBI’s focus on the need for smaller ticket-size SIPs than Rs 500 to enable more investors to benefit from mutual funds.
In January, SEBI mentioned Rs 250 SIPs in a consultation paper, stating that such a move could effectively promote financial inclusion through the sachetisation of investment in mutual fund schemes.
ALSO READ: SEBI consultation paper on Rs 250 SIP
The regulator also hoped that asset management companies (AMCs) would reach break-even by the financial inclusion facilitated under the proposed scheme within two years, inviting comments from stakeholders by February 6.