MF access made easy

There is no reason why smaller investors should not get a shot at long-term wealth creation

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The recently-launched JanNivesh ₹250 systematic investment plan (SIP) by SBI Mutual Fund, along with Paytm, is a brave attempt to ensure that a large part of the country—rural and semi-urban—is not denied professional fund management services. But questions are being raised already whether it would achieve the desired results. This is not the first time that such a thing is being attempted. SBI Mutual Fund had launched Chota SIP with a minimum investment of ₹100, with a lock-in period of five years, in 2009. However, the enthusiasm around it died soon, even though the Sensex rose a whopping 81% during that year. Perhaps, the 2008 financial crisis was too fresh in the minds of potential investors. This time, too, the launch comes when the indices have seen a steep fall. In January, the SIP closures were higher by 514,000 than new registrations. All these will make first-time investors more than a little wary.