Kotak Mutual Fund Introduces ‘Choti SIP’ to Simplify Investing
Kotak Mutual Fund has introduced a new scheme named ‘Choti SIP,’ in which individuals can start investing with as little as Rs.250. The scheme is designed to enable more individuals to invest in mutual funds without requiring a large sum. It will be offered for all schemes of the company that are eligible.
Making More People Invest
In India, merely 5.4 crores of people invest in mutual funds. Through Choti SIP, now everybody can begin their investment journey with a minimal investment. Though the investment is low, it can rise eventually and contribute to wealth creation.
Who Can Invest?
This plan is only for first-time investors of mutual funds, either under SIP or lump sum. Some of the norms for Choti SIP are:
- Investments should be made under the Growth Option.
- Investors have to make 60 monthly payments.
- Payments have to be made only through NACH or UPI auto-pay.
SEBI and AMFI Support
The concept of small SIPs was first introduced by AMFI and SEBI on February 21 in Mumbai. During the event, the former chairperson of SEBI spoke about small investments and how it will engage more people into mutual funds. The idea is to reach mutual funds to each corner of the nation.
Other Similar Plans
Even before Kotak Mutual Fund, SBI Mutual Fund had introduced a similar scheme named ‘JanNivesh SIP,‘ in which the investment is from Rs.250. These new schemes indicate that mutual fund houses are making efforts to make investing affordable and convenient for all.
Through Choti SIP, Kotak Mutual Fund is facilitating first-time investors to invest small sums of money and gradually build their financial future.