Kotak Mutual Fund has launched the Choti SIP service, allowing investors to start a Systematic Investment Plan (SIP) with just ₹250.
This initiative follows the Small Ticket SIP scheme introduced by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI).
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Benefits of Choti SIP
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (KMAMC), highlighted that out of India’s 140 crore population, only 5.4 crore people invest in mutual funds. This means a large section of people is yet to explore this opportunity.
SIP is an excellent way for new investors to enter the mutual fund market. With Choti SIP, even a beginner can start investing with just ₹250 per month.
This initiative can be seen as “Choti Rakam – Bada Kadam” (Small Amount – Big Step).
Terms and Conditions of Choti SIP
1) Investment starts at ₹250 per month.
2) Only new investors (those who haven’t invested in mutual funds before) can participate.
3) A minimum of 60 monthly installments is required.
4) Investments must be made under the growth option.
5) Payments can be made only through NACH or UPI auto-pay.
Why is Choti SIP Special?
The Choti SIP scheme is designed for first-time investors who want to start small.
It offers an opportunity for individuals looking to invest a small amount but still benefit from long-term savings and compounding. Over time, even small contributions can lead to significant wealth accumulation.
About Kotak Mahindra Asset Management Company
Kotak Mahindra Asset Management Company Limited (KMAMC) is a wholly-owned subsidiary of Kotak Mahindra Bank and manages Kotak Mahindra Mutual Fund (KMF).
Since its launch in December 1998, it has introduced various schemes for investors.
As of December 31, 2024, Kotak Mutual Fund has over 70.43 lakh unique folios and operates through 104 branches across 96 cities in India.