Priyanka Tiwari
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Kotak Mutual Fund has launched a new initiative, ‘Choti SIP’, aimed at making mutual fund investments more accessible to a larger pool of investors. With a minimum investment amount of just Rs 250, the scheme allows investors to participate in all eligible mutual fund schemes of the Asset Management Company (AMC).
Choti SIP: Empowering First-Time Investors
Nilesh Shah, Managing Director of Kotak Mutual Fund, emphasized the potential of mutual fund investments in India and the need to tap into a wider investor base. “Currently, only about 5.4 crore unique investors in India are mutual fund investors. With the launch of Choti SIP, a new investor can begin their wealth creation journey with a minimum amount of Rs. 250. We can call it ‘Choti Rakam – Bada Kadam,’” Shah said.
The primary objective of the Choti SIP facility is to lower the barriers for first-time investors and make mutual funds more inclusive. By offering such an affordable entry point, the initiative aims to democratize wealth creation opportunities, making them accessible to more individuals.
Eligibility and Investment Terms for Choti SIP
To participate in the Choti SIP initiative, investors must meet specific criteria:
- They should not have previously invested in mutual funds, either through SIP or lumpsum.
- Investments must be made under the Growth Option.
- Participants must commit to a minimum of 60 monthly installments, with payments being facilitated through NACH or UPI auto-pay.
A Step Toward Greater Financial Inclusion
The Choti SIP initiative aligns with the broader goal of financial inclusion in India. The scheme was launched after the small SIP idea was unveiled by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI) in Mumbai on February 21, 2025. Former SEBI Chairperson Madhabi Buch highlighted that such schemes, through sachetization, make investing an accessible opportunity for everyone across the country. “Every son and daughter will be able to participate in the industry,” she stated.
Other Initiatives in the Market
SBI Mutual Fund also announced a similar initiative, ‘JanNivesh SIP’, offering micro SIPs starting from Rs 250. Both initiatives reflect a growing effort in the Indian mutual fund industry to make investing accessible to a larger, more diverse group of investors.
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