SBI Mutual Fund is revolutionising financial inclusion with its industry-first launch of the JanNivesh SIP, enabling investments starting at just Rs 250. This initiative marks a significant step in making mutual fund investing more accessible to millions of small savers, empowering them to build wealth over time.
In an exclusive conversation with Mr Vivek Law, Editor-in-Chief and Co-founder of Simple Hai!, Mr DP Singh, Deputy MD & Joint CEO of SBI Mutual Fund, underscored the significance of smaller ticket size investments in broadening financial inclusion. He emphasised that, much like the Jan Dhan Yojana brought millions into the banking system in 2014, JanNivesh aims to introduce millions of Indians to investing.
Bridging the Accessibility Gap in Mutual Funds
With over 50 crore Indians having linked their PAN with Aadhaar and five crore people already investing in mutual funds, the sector is on an upward trajectory. However, as Mr Singh pointed out, despite this progress, mutual fund penetration in India remains low. A key challenge lies in ensuring that more Indians take the next step from financial inclusion to investment participation.
The introduction of the JanNivesh SIP directly addresses two critical hurdles:
Regulatory and Procedural Barriers: Many potential investors, especially in smaller towns and rural areas, struggle with complex KYC procedures. The upcoming rollout of the revamped Central KYC (CKYC) registry, announced in the Union Budget 2025, aims to simplify and unify KYC processes across financial sectors, making it easier for first-time investors to enter the mutual fund space.
Remuneration Challenges: The current compensation structure for intermediaries has historically discouraged onboarding small investors. However, the mutual fund industry, along with SEBI, is actively working to align incentives with financial inclusion goals, ensuring that intermediaries find value in catering to smaller investors.
Digital SIPs: A Game Changer for Financial Inclusion
Digital platforms are playing a crucial role in enabling small investments. The recently launched JanNivesh SIP has been seamlessly integrated into everyday digital apps like SBI’s YONO, Paytm, Groww, and Coin by Zerodha, allowing investors to start with minimal amounts. This approach ensures that even those with limited financial literacy can participate in mutual funds through familiar platforms.
During the interview with Mr Vivek Law, Mr Singh highlighted that 50% of SIPs today are generated digitally, reflecting a positive trend. However, he acknowledged the need for increased financial literacy alongside digital accessibility. To guide new investors, he recommends starting with conservative hybrid funds (25% equity and 75% debt) or balanced advantage funds, offering a safer entry point before transitioning to higher-risk categories.
The Road Ahead for JanNivesh
For millions of Indians, bank deposits alone will not be sufficient to generate long-term wealth. Mr Singh emphasised that as incomes grow, investments must increase accordingly to outpace inflation and achieve financial goals. The launch of the JanNivesh SIP marks a significant step in this direction, ensuring that wealth creation is not limited to high-net-worth individuals but extends to daily earners and small savers alike.
With the mutual fund industry growing at an unprecedented pace, Mr Singh envisions a future where it could surpass the banking industry in scale. The launch of smaller ticket size SIPs like JanNivesh is a crucial step toward realising this vision. By fostering a culture of investment among small savers, SBI Mutual Fund is leading the way in making mutual funds truly accessible to all.
Disclaimer-
An Investor Education and Awareness Initiative by SBI Mutual Fund.
Investors should deal only with registered Mutual Funds, details of which can be verified on the SEBI website (https://www.sebi.gov.in) under ‘Intermediaries/Market Infrastructure Institutions’. Please refer to website of mutual funds for process of completing one-time KYC (Know Your Customer) including process for change in address, phone number, bank details etc. Investors may lodge complaints on https://www.scores.gov.in against registered intermediaries if they are unsatisfied with their responses. SCORES facilitates you to lodge your complaint online with SEBI and subsequently view its status.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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