SEBI’s ‘Chhoti SIP’ Scheme Yet to Gain Momentum, Says Executive Director Amarjeet Singh
The Securities and Exchange Board of India (SEBI) introduced the ‘Chhoti SIP’ scheme in March 2024 to encourage small-ticket investments in mutual funds. The scheme allows investors to start with as little as ₹100 per month, targeting first-time investors and those with limited savings. However, nearly a year after its launch, the scheme has not received the strong response expected.
Speaking at a press conference, SEBI Executive Director Amarjeet Singh acknowledged the modest start but expressed optimism about its long-term potential. “This is a new initiative. It takes time, as you know. The early numbers are small, but we are in continuous dialogue with the industry and stakeholders. The momentum will build gradually,” he said.
Aims of the Chhoti SIP Scheme
The primary goal of the Chhoti SIP initiative is to expand mutual fund penetration in semi-urban and rural areas, where awareness and accessibility remain limited. By lowering the entry barrier to just ₹100 per month, the scheme seeks to:
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Attract first-time investors who may hesitate to commit larger sums.
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Encourage financial inclusion among low-income households.
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Build long-term savings habits among small savers.
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Channelize small but consistent savings into the capital market.
Industry experts believe that once awareness spreads, the scheme could help millions of households begin their mutual fund journey without financial strain.
AMFI’s Role in Promotion
The Association of Mutual Funds in India (AMFI) has also been tasked with popularizing the scheme. Recently, AMFI CEO Venkat Chalasani confirmed that the body is preparing a promotional campaign, similar to the successful “Mutual Funds Sahi Hai” initiative, but tailored to highlight the benefits of Chhoti SIP.
SEBI and AMFI had earlier announced plans to roll out ₹250 SIP options as well, with the objective of making mutual funds more accessible to small investors. These efforts reflect a larger push to bring India’s vast population of savers into organized financial markets.
Why Adoption Is Slow
While the scheme offers high potential, several challenges are holding back rapid adoption:
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Low awareness – Many small savers, particularly in rural areas, are still unaware of mutual funds as an investment option.
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Trust factor – New investors often hesitate to enter equity markets due to concerns about risk.
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Distribution challenges – Reaching remote locations and onboarding first-time investors requires time and effort.
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Competing priorities – For households with limited disposable income, essential expenses often take priority over investment.
Experts suggest that consistent awareness campaigns and strong distribution networks will be critical in bridging these gaps.
Industry Outlook
Despite the slow start, market analysts believe that Chhoti SIP has strong long-term prospects. India’s growing financial literacy, coupled with increasing digital adoption, could accelerate participation in such schemes. Once trust is built and visibility improves, the scheme is expected to attract large volumes of micro-investors, thereby deepening mutual fund penetration across the country.
Final Word
The Chhoti SIP scheme represents SEBI’s effort to democratize investing, making mutual funds accessible to even the smallest of savers. While the response so far has been lukewarm, regulators remain confident that momentum will build with time. For first-time investors, the scheme provides a low-risk entry point into the world of mutual funds, potentially transforming savings habits and driving long-term wealth creation.
