Who doesn’t want to start investing and build a corpus? Everyone, but lack of funds and low salary limit the choices. In an effort to democratize investing, fintech giant Paytm, in collaboration with SBI Mutual Fund, has launched the JanNivesh SIP initiative, enabling individuals to commence Systematic Investment Plans (SIP) with investments as low as Rs 250.
SBI JanNivesh SIP is an investment initiative that aims to make wealth-building more accessible to all segments of society. As the Indian economy is growing and investment in mutual funds, particularly through SIP, has, taken center stage among individuals whether new or seasoned investors. SIPs are a popular method for investing in mutual funds as well as equities (Stocks), allowing investors, from small to big, to participate in the market while effectively managing risk through regular, incremental investments.
What is the JanNivesh SIP Initiative?
Launched by SBI Mutual Funds, the JanNivesh SIP initiative is a mutual fund investment strategy designed to encourage broader participation in India’s financial growth by allowing individuals to invest small amounts regularly. The investment through JanNivesh SIP will be in the SBI Balanced Advantage Fund. SBI Balanced Advantage Fund is a good option for new investors. It is tax-beneficial with balanced risk-reward and offers smart allocation, which varies between equity and debt according to the market.
Key Features
Low Entry Point: Investments can start from just Rs 250 per installment.
Flexible Investment Options: Investors can choose daily, weekly, or monthly SIPs to align with their financial plans.
Automated Investment: The SIP is facilitated through UPI Autopay, ensuring seamless and automated transactions.
Wealth Creation: Offers the potential for wealth accumulation through the power of compounding in mutual fund investments.
Step-by-Step Guide to Setting Up Your JanNivesh SIP on Paytm
Open Paytm App: Locate and tap the JanNivesh SIP icon in the ‘Do More with Paytm’ section.
Choose Investment Frequency: Select your preferred investment schedule: daily, weekly, or monthly.
Select Investment Amount: Specify the amount you wish to contribute, starting from Rs 250.
Enter PAN Details: Click “Proceed” and input your PAN details when prompted.
Complete KYC: Fulfill SEBI-mandated KYC requirements by providing the necessary information.
Review SIP Details: Check your SIP details and proceed to set up a UPI Autopay mandate for smooth payments.
Register SIP: Once the UPI Autopay mandate is successfully set up, your SIP will be officially registered.
Advantages of SIP
Mutual funds investment via SIP is a hot way to start investment with small capital. It allows retail investors to step in the investment journey and build a corpus for future courses of action apart from traditional investment tools such as Fixed Deposits (FD). SBI JanNivesh SIP is an initiative to bring closer first-time investors in the equity market, who traditionally are debt investors, particularly FDs. According to SBI Mutual Fund, consistent, long-term investment through SIPs can amplify benefits through the compounding effect. This initiative will allow investors to earn returns not only on their principal investment but also on the gains accrued, fostering substantial growth over time.
Disclaimer: The information is covered based on the latest research and development available. However, it may not fully reflect all the current aspects of the subject matter. Moneydaily.in advises readers to visit the SBI Mutual Funds’ website for further information.
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