Kotak Mutual Fund Introduces ₹250 ‘Choti SIP’ for First Time Investors

Kotak Mahindra Asset Management Company Ltd (KMAMC) has announced the launch of ‘Choti SIP’, allowing investors to start a Systematic Investment Plan (SIP) with a minimum monthly contribution of ₹250. The facility is applicable across all eligible schemes of Kotak Mutual Fund.

Eligibility Criteria

The Choti SIP is specifically for first-time mutual fund investors. To qualify, the investor must not have previously invested in any mutual fund scheme, whether through SIP or lump sum, across the industry.

Mandatory Conditions for Participation

Under this facility, the investor must opt for the Growth Option only and commit to a minimum of 60 monthly instalments. Additionally, the SIP must be registered through NACH or UPI auto-pay systems, other payment modes are not accepted.

Sachet-Style Investing 

This launch aligns with the framework introduced by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI) to encourage small-ticket SIPs. The announcement of this initiative took place on February 21 in Mumbai, where SEBI and AMFI jointly introduced the small SIP model to promote greater retail participation.

Mutual Fund Participation in India

India currently has around 5.4 crore unique mutual fund investors, according to industry estimates reports. The goal of initiatives like Choti SIP is to reduce barriers to entry and widen access to mutual fund investments, especially for individuals with limited capital.

Previous Launches by Other AMCs

Before Kotak, SBI Mutual Fund launched a similar micro SIP offering called JanNivesh SIP, which also allowed investments starting from ₹250. Other asset management companies, including Aditya Birla Sun Life Mutual Fund, have also introduced small-ticket SIPs under the same regulatory framework.

Conclusion

The purpose of this product is to make mutual fund investing more accessible and to promote regular savings among new investors. Kotak Mutual Fund has clarified that while the facility lowers the minimum investment amount, it does not guarantee returns and advises users to assess their financial plans accordingly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.