Chhoti SIP
Empowering First-Time Investors through Chhoti SIP
What is Chhoti SIP?
In order to increase the reach of mutual funds, facilitate participation from low income groups and for larger financial inclusion, SEBI in collaboration with mutual fund industry and Association of Mutual Funds in India (AMFI) has conceptualised the idea of ‘sachetisation’ of mutual funds also referred to as Chhoti SIP.
Chhoti SIP is a small-ticket Systematic Investment Plan that allows the new investors to invest as little as ₹250 per instalment in eligible schemes of investor’s choice.
The instalment size under Chhoti SIP shall be equal to Rs. 250, subject to a maximum of three SIPs (one each in up to three Asset Management Companies).
Minimum commitment by a new investor under Chhoti SIP shall be for 60 instalments. However, if investor desires to stop SIP or withdraw the SIP investment prematurely, there will be no restriction on it.
It is designed to make investing accessible for first-time investors and encourage disciplined, long-term wealth creation.
Why Chhoti SIP?
Because starting small can make a big difference
Low starting amount – Begin with just ₹250
Easy entry to mutual funds – No large commitment needed
Build investing discipline – Invest regularly, grow steadily
Accessible for all – For first-time investors, new to Mutual Fund industry
Chhoti SIP may help turn saving into a habit, making investing less intimidating and more achievable.
How it works?
An Investor new to mutual funds industry may begin the process Read more
The investor may select a suitable and eligible mutual fund scheme
Start an SIP with ₹250 per instalment
Which investments cannot be considered as a Chhoti SIP?
Investments made by existing investors,
Investments that are not classified as small ticket SIPs,
Lumpsum investments, even if made by new investors.
Why start small?
Many people delay investing thinking they need a large amount.
Chhoti SIP removes that barrier by allowing you to:
Start early
Stay consistent
Provides benefit of compounding over time
Small steps, taken consistently, lead to disciplined investing
Even small investments, when done regularly, can grow meaningfully in the long run.
Who is it for?
First-time investors in Mutual Funds especially:
Young earners & students
Small savers
Anyone hesitant to start with large investments
Key features
Minimum SIP amount: ₹250
Monthly and fortnightly investment options
Digital-first, simple onboarding
Payments via National Automated Clearing House (NACH) and Unified Payment Interface (UPI) auto pay only.
Flexibility to withdraw (as per scheme terms)
Conclusion
Your journey doesn’t need to start big. It just needs to start.
Take the first step towards investing today.
For further details regarding Chhoti SIP, kindly refer the Scheme Information Document (SID) and Key Information Memorandum (KIM) of respective schemes and Statement of Additional Information (SAI) of concerned Mutual Funds.
The information is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
FAQs
1. An Investor new to mutual funds industry may begin the process Read more
2. The investor may select a suitable and eligible mutual fund scheme
3. Start an SIP with ₹250 per instalment
Get a call back