Systematic Investment Plans (SIPs) have been one of the most popular ways for retail investors to participate in mutual funds. However, the minimum investment amount for most SIPs has traditionally been ₹ 500 or ₹ 1,000 per month. Now, with the introduction of SBI Jan Nivesh SIP, also referred to as “Choti SIP,” there is a renewed interest among small savers and first-time investors which is available on SBI Yono app for all its users and on other fintech platforms like Paytm, Zerodha and Groww. But what exactly is this scheme, and why is it getting so much attention? Let’s explore.
About SBI Jan Nivesh SIP or ₹ 250 SIP
SBI Mutual Fund, in collaboration with the State Bank of India (SBI), recently launched the Jan Nivesh SIP few days back, which allows investors to start investing with just ₹ 250 per month. This initiative aims to encourage financial inclusion and make mutual fund investing accessible to a larger section of the population, particularly those in rural and semi-urban areas.
SBI Jan Nivesh SIP?
Choti SIP, as the name suggests, is a small SIP where investors can start investing in mutual funds with as little as ₹ 250 per month. The SBI JanNivesh SIP allows individuals to systematically invest in mutual funds without a significant financial burden. This scheme is primarily designed for first-time investors, daily wage earners, and those with limited disposable income.
Where Does SBI Jan Nivesh SIP Invest?
The JanNivesh SIP currently invests in the SBI Balanced Advantage Fund, which is a dynamic asset allocation fund. This fund invests in a mix of equity and debt instruments, adjusting allocations based on market conditions. This approach aims to optimize returns while managing risks effectively. Unlike pure equity funds, a balanced advantage fund provides stability during market downturns, making it an ideal choice for conservative investors. You can check here about Different types of mutual funds to know more about such funds
How is SBI Jan Nivesh SIP Different from Regular SIPs?
- Lower Entry Barrier – Traditional SIPs usually require a minimum investment of ₹ 500 or ₹ 1,000, whereas Choti SIP allows investors to start with just ₹ 250.
- Financial Inclusion Focus – This initiative is specifically designed to encourage financial participation among low-income individuals and those new to investing.
- Flexible Contribution Options – Investors can choose daily, weekly, or monthly investment plans, unlike regular SIPs that are usually monthly or quarterly.
- Fund Choice – While many SIPs allow investments in multiple mutual funds, the JanNivesh SIP currently limits investments to the SBI Balanced Advantage Fund. There are several mutual funds which crashed by 20% to 22% in the last 6 months, however balanced advantage funds like SBI balanced advantage fund has fallen only 2%.
Are There Any SIPs Lower Than ₹ 250 by Other AMCs?
As of now, most Asset Management Companies (AMCs) have a minimum SIP requirement of ₹ 500 or more. However, some fund houses are considering introducing similar low-cost SIP options following the success of the SBI JanNivesh SIP. Investors should keep an eye on announcements from other AMCs that may introduce similar schemes in the future.
Positive Factors of SBI Jan Nivesh SIP
- Encourages Small Savers – With just ₹ 250 per month, individuals from all financial backgrounds can start their investment journey.
- Compounding Benefits – Even small investments, when continued consistently over decades, can grow into a significant corpus.
- Market Participation for All – It enables financial participation for those who previously found mutual fund investments unaffordable.
- Easy Access – The scheme is available through platforms like SBI YONO, Paytm, and other fintech apps, making it convenient to invest.
Hidden Factors Investors Should Consider
- Limited Fund Selection – Currently, JanNivesh SIP only allows investment in SBI Balanced Advantage Fund, restricting diversification options. Investors can explore Diversified mutual fund portfolios based on their risk appetite and financial goals.
- Transaction Costs and Charges – Although the ₹ 250 SIP aims to minimize costs, small investments may have proportionally higher impact due to fund expense ratios. As an example, SBI Balanced Advantage Fund has expense ratio of 0.69% for direct plans. Other Balanced Advantage Mutual Funds has expense ratio between 0.34% to 1.36% for direct plans.
- Long-Term Commitment Needed – The true benefits of compounding and wealth accumulation require consistent investment over decades.
- Inflation Impact – While returns seem attractive in absolute terms, inflation can reduce the real value of future corpus.
SBI Jan Nivesh SIP Calculator
Investors can invest ₹ 250 SIP in this SBI Jan Nivesh plan. However you might be wondering how the SBI Jan Nivesh SIP calculator or calculations work. While the past performance is not guaranteed, mutual funds historically generated 12% annualised returns. If we consider this, below would be the computations. Here are the returns one can expect.
3 Years SIP – ₹ 250 x 36 months = 9,000 investment grows to ₹ 10,770
5 Years SIP – ₹ 250 x 60 months = 15,000 investment grows to ₹ 20,276
10 Years SIP – ₹ 250 x 120 months = 30,000 investment grows to ₹ 56,009
20 Years SIP – ₹ 250 x 240 months = 60,000 investment grows to ₹ 229,964
30 Years SIP – ₹ 250 x 360 months = 90,000 investment grows to ₹ 770,243
How to invest in SBI Jan Nivesh SIP?
It is available on SBI Yono app for all its users and on other fintech platforms like Paytm, Zerodha and Groww.
What is SBI Jan Nivesh SIP NAV?
Since it invests in SBI Balanced Advantage Fund, its NAV as on 23-Feb-2025 is ₹ 14.9054 per unit.
Conclusion – SBI Jan Nivesh Choti SIP
The introduction of the ₹ 250 SIP by SBI Mutual Fund through the JanNivesh scheme is a significant step towards financial inclusion. It makes investing accessible to individuals who previously found it difficult to commit to higher SIP amounts. While this initiative has many positives, investors should be mindful of the fund’s limitations, expenses, and long-term commitment required for meaningful wealth creation. For those looking to start small and build financial discipline, Choti SIP is an excellent entry point into mutual funds.
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sir I activated through sbi yono but the fund is showing regular plan growth and having expense ration of 1.69%.is it ok?
No. You should be able to see direct plans of the fund. Pls recheck
thank you sir…
sir only…balance advantage plan regular growth and balance advantage regular plan IDCW only…can you cross check it?
direct growth only
Thanks for details discussion about Jan Nivesh Choti SIP. But one thing as it is an open ended scheme it is not mentioned how to redeem the funds while necessary. However it is a great discussion. Thank you.
This is open ended scheme and one can redeem like you do for any other mutual fund. However there could be exit load (if any) which you need to check time to time.