Have you ever thought of investing in mutual funds, but held yourself back because of many reasons, such as high entry barriers, inconsistent savings, or lack of financial knowledge?
You're not alone. Here's the good news for you:
Kotak Mahindra Asset Management Company Ltd (KMAMC) has introduced a new beginner-friendly scheme under which you can now easily start investing with only ₹250 per month. This option is known as Choti SIP.
What is Kotak’s ‘Choti SIP’?
"Choti SIP" means that it is a Small Investment Plan (SIP) that is specifically designed for new investors. It is suitable for people who do not have a lump sum of money but want to invest in mutual funds.
Its tagline is “Choti Rakam, Bada Kadam,” which refers to Small amount, big step.
Minimum investment
Under this scheme, individuals can start by investing just ₹250 per month.
Thus, it is suitable for people having lower incomes or even young professionals who are just at the starting stage of their career and do not have lump sum amounts of money, but want to invest in an SIP.
Eligibility
The benefits of this scheme can be availed only by first-time investors, who are new to the market and who have not initially invested in any SIP or mutual funds before.
Key Features
1) It becomes accessible for larger groups of people due to its low investment. It further helps a broader audience to avail its benefits and save some money for easy investing.
2) As the amount is low, people who fear risk while investing large amounts can easily find themselves fit in this category.
3) It has different payment options available, such as UPI auto-pay or National Automated Clearing House (NACH).
4) An individual must have a minimum of 60 installments on a monthly basis for it.
5) In it, an investment must be made under the Growth Option.
Who should go for Kotak Small (Choti) SIP?
1) Students & young professionals
2) Low-income individuals
3) Risk-averse new investors
Why Choti SIP is a Smart Move in 2025?
1) Low Barrier to Entry
Anyone can start with just ₹250 – no need for big savings.
2) Disciplined Savings
With monthly auto-debit, you build the habit of investing.3) No Financial Jargon
Easy to set up, no complex documents or choices needed.4) Safe Start
Since it’s low-ticket, it helps you test the waters before diving deeper.How to Start Your Choti SIP
-
Visit Kotak Mutual Fund's official website.
-
Choose “Choti SIP”.
-
Complete KYC & e-mandate via UPI/NACH.
-
Set your monthly ₹250 SIP.
-
Track your investments easily via the app or the web.
Thus, Choti SIP, or small investment option, is a great choice for people who do not have large money to invest or even those who do not have much knowledge about investing options.
FAQs
Q1. Can I invest more than ₹250 later?
Yes, you can modify your SIP amount later as per fund rules.
Q2. What happens if I miss a payment?
Missing 1-2 payments doesn’t cancel the SIP, but try to maintain consistency.
Q3. Is it safe to invest such a small amount?
Yes. All mutual funds, including Choti SIP, are regulated by SEBI.
