SBI Mutual Fund on Wednesday, April 15th started its equity based micro systematic investment plan (Micro SIP) at Alibaug, near Mumbai.
Micro SIP has been launched to offer long-term investment benefits in equity to low income households residing in the rural and semi-urban areas. "This plan is aimed at getting in low income households in rural and semi-urban areas to benefit from long-term investment in equity as an asset class," said Achal Gupta, Managing Director, SBI Mutual Fund.
The first 100 investors from the low income group in Alibaug were basically the daily wage earners who enrolled with the SIP in the presence of Mr. O. P. Bhatt, Chairman, State Bank of India. This was a part of the initiative taken by the bank.
The bank plans to market the product through intermediaries like Self-Help Groups (SHGs), NGOs and Micro Credit/ Finance Institutions. "We plan to take this product to the masses partly through marketing by SBI Mutual Fund, and partly by setting targets for SBI branches for the sale of this product," said Bhatt.
The plan is called as SBI Chota SIP and requires a minimum investment of only Rs 100 per month with minimum tenure of 5 years.
The bank has also requested the government to remove the permanent account number (PAN) requirement, which is a must for all mutual fund investments, for this plan.
Presently the investors who want to opt for this plan have the option of investing in SBI Mutual Fund's Magnum Balanced Fund, MMPS 93, MSFU Contra Fund, and SBI Blue Chip Fund and later on this plan would be extended to other schemes as well.