If you want to teach your children about saving, invest here! Even saving just ₹250 from their pocket money can add up to lakhs..
In today's world, it's just as important to teach children about money management as it is to educate them academically. If children develop the habit of saving and investing from a young age, they can become financially secure in the future. The good news is that you don't need a large sum of money for this. By saving just ₹250 a month, or about ₹8.5 a day, you can build a fund worth lakhs of rupees in your child's name. SBI's JanNivesh SIP is a great and easy option for this.
What is SBI JanNivesh SIP?
SBI Mutual Fund's JanNivesh SIP is a scheme specifically designed for small investors, children, and new investors. While SIPs usually start at ₹500, with JanNivesh SIP, you can start investing with just ₹250 per month. This scheme invests in the SBI Balanced Advantage Fund, which maintains a balance between risk and return.
How does a Balanced Advantage Fund work?
A Balanced Advantage Fund is a hybrid fund. Money is invested in two areas:
Equity (stock market)
Debt (bonds and secure instruments)
The fund manager decides where to invest more money at any given time based on market conditions. When the market is expensive, the risk is reduced, and when there are good opportunities, equity investment is increased. This is why this fund is considered ideal for children and long-term investments.
How a ₹250 SIP can create a fund worth lakhs
Now, let's understand how a large fund can be created over the long term by investing just ₹250 per month. The following estimates are based on an average annual return of 12%.
SIP Duration Total Investment Estimated Return Total Fund
15 years ₹45,000 ₹73,983 ₹1,18,983
20 years ₹60,000 ₹1,69,964 ₹2,29,964
30 years ₹90,000 ₹6,80,243 ₹7,70,243
Note: Mutual funds are subject to market risks. The 12% return is an estimate and may vary.
Where and how to invest
Investing in JanNivesh SIP is quite easy. You can invest through the platforms listed below:
SBI YONO App
SBI Mutual Fund website
Digital platforms like Paytm
Offline bank branch or mutual fund agent
This SIP offers daily, weekly, and monthly investment options. You can choose any option according to your convenience.
Why is SIP beneficial for children?
Investment can be started with a very small amount.
It instills the habit of saving and financial discipline in children.
It provides the tremendous benefit of compounding in the long term.
It helps create a fund for future education, career, or other needs.
Keep these things in mind before investing
Returns in mutual funds are not guaranteed.
Regularity is most important in SIPs.
Investing for a longer period yields better results.
Stopping the SIP midway may reduce the benefit of compounding.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
