SBI Mutual Fund Launches ‘JanNivesh SIP’ to Promote Micro-Investing

A Vision for Financial Inclusion

SBI Mutual Fund, in collaboration with SBI Bank, has introduced the ‘JanNivesh SIP’ scheme, allowing investments as low as ₹250 per month. SEBI Chairperson Madhabi Puri Buch described this initiative as a long-held aspiration, aimed at bringing wealth-creation opportunities to millions of Indian households. This micro-SIP initiative addresses a key challenge in the industry—ensuring that small investments remain economically viable.

Previously, financial institutions had introduced SIPs with amounts as low as ₹100 and ₹500, but high operational costs hindered their widespread adoption. To counter this, SBI Bank has waived transaction charges for micro-SIPs, ensuring that every rupee invested contributes directly to wealth accumulation. Buch emphasised that the entire mutual fund ecosystem—including RTAs, KRAs, and depositories—collaborated to make this model sustainable, with a break-even period of two to three years ensuring its economic feasibility.

Leveraging Technology for Mass Adoption

Technology has played a critical role in making low-ticket investments viable. Buch highlighted how India’s financial ecosystem has leveraged technology to achieve the necessary scale, making these investments profitable. She also noted that initiatives like JanNivesh SIP would help bridge the wealth gap between urban and rural India, ensuring financial inclusion for all.

Initially, JanNivesh SIP will be available exclusively for the SBI Balanced Advantage Fund. Investors can access the scheme through digital platforms such as SBI YONO, Paytm. 

Paytm founder Vijay Shekhar Sharma expressed excitement about the launch, revealing that 550 registrations had already been recorded on their platform during the event. Paytm also aims to extend this opportunity to its merchant partners, enabling them to start their investment journey and build long-term financial security.

Conclusion

The JanNivesh SIP initiative marks a significant step towards making investment accessible to all, reinforcing India’s commitment to financial inclusion, with strong institutional support and the elimination of transaction charges.

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 are subject to market risks, read all scheme related documents carefully.