Aditya Birla Sun Life Mutual Fund has unveiled a new investment initiative, ‘Choti SIP,’ aimed at making systematic investing more accessible to a wider audience. This scheme allows individuals to start investing with as little as Rs. 250 each month, making it a more affordable option for those who want to embark on a disciplined wealth creation journey.
Key Features of the ‘Choti SIP’ Plan
Aditya Birla Sun Life Mutual Fund’s new offering, Choti SIP, allows people to invest in mutual funds with a low initial amount. By reducing the entry threshold, this initiative is designed to encourage a wider range of people to start investing regularly, especially those with limited financial resources.
- Low Monthly Investment: Investors can begin investing with just Rs. 250 per month.
- Eligible Funds: Choti SIP is available for a range of mutual fund schemes, excluding Small, Midcap Funds, Debt, Sectoral, and Thematic funds.
- Minimum Commitment: To remain eligible, investors must commit to a minimum of 60 monthly payments, although they have the option for early withdrawals if needed.
- Only Growth Option: The scheme is offered exclusively with the Growth option, allowing for reinvestment of returns.
- Payment Methods: Investors can pay through NACH (National Automated Clearing House) or UPI Auto Pay for seamless transaction processing.
- Restriction for Existing Investors: People who are already invested in other mutual funds, SIPs, or lump-sum investments are not eligible for this scheme.
Aditya Birla Sun Life AMC Overview
Founded in 1994, Aditya Birla Sun Life Asset Management Company (AMC) manages a variety of mutual funds under the Aditya Birla Sun Life Mutual Fund brand. The company’s services extend beyond mutual funds, offering portfolio management and alternative investment opportunities. As of December 31, 2024, the company’s assets under management (AUM) stood at Rs. 4 lakh crore. Its parent company, Aditya Birla Capital Limited (ABCL), has an AUM of Rs. 5.03 lakh crore.
CEO’s Statement on Choti SIP
A. Balasubramanian, the Managing Director and CEO of Aditya Birla Sun Life AMC Ltd., expressed confidence that Choti SIP will lower the barriers for potential investors, making systematic investment more approachable. He noted that this initiative is expected to foster financial inclusion by enabling individuals with limited resources to start investing and build wealth over time.
Conclusion
The launch of ‘Choti SIP’ by Aditya Birla Sun Life Mutual Fund is a significant step toward making systematic investing more accessible. With a low entry point of Rs. 250 per month and the option for early withdrawals, the plan offers a flexible and affordable path for individuals looking to secure their financial future. The growth potential of the scheme, combined with easy payment options, positions Choti SIP as an attractive choice for those seeking a steady, disciplined approach to wealth creation.
Frequently Asked Questions
1. How much do I need to invest to start a Choti SIP?
You can start investing with as little as Rs. 250 per month.
2. Which mutual fund schemes are available under Choti SIP?
Choti SIP is available for most mutual fund schemes, excluding Small, Midcap Funds, Debt, Sectoral, and Thematic funds.
3. Is there a minimum duration for the investment?
Yes, a minimum of 60 instalments is required, although you can make early withdrawals if necessary.
4. Can I select other options apart from the Growth option?
No, Choti SIP is only available with the Growth option.
5. How can I make payments for my Choti SIP?
Payments can be made via NACH or UPI Auto Pay.
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