Kotak Mutual Fund introduces Choti SIP for ₹250 investment

Kotak Mutual Fund has launched a new initiative called "Choti SIP," allowing new investors to start investing with just ₹250. This program is designed to make mutual funds more accessible to first-time investors and promote long-term wealth building. The Choti SIP will be available for all eligible mutual fund schemes offered by Kotak. This move follows recent efforts by SEBI and AMFI to increase mutual fund participation among Indian savers. Currently, only about 5.4 crore people in India invest in mutual funds, showing there's a significant untapped market. Nilesh Shah, the Managing Director of Kotak Mutual Fund, emphasized that this initiative lowers the entry barriers for new investors. He encouraged first-time investors to start their wealth creation journey with the minimum investment amount. Investors need to commit to at least 60 monthly installments and can only pay via NACH or UPI auto-pay. This initiative adds to similar efforts in the industry. For instance, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund have also introduced their own versions of small SIPs in recent months. AMFI also launched multiple initiatives in February to improve financial inclusion and investor awareness.