SBI Mutual Fund has launched an equity–based micro SIP called SBI Chota SIP. 

This scheme is targeted at low income households in rural and semi-urban areas. The idea behind the scheme is basically to introduce them to long term investments in equity.

The minimum investment needed is Rs.100 per month and the minimum duration is 5 years.

Those investing thru the Chota SIP can invest in SBI Magnum Balanced Fund, MMPS 93, MSFU Contra Fund, and SBI Blue Chip Fund.

This will certainly help those from the lower income group but I see one problem with applying for this scheme – one needs to have a PAN card, and I think this is a big hurdle. If they can use some other document(s) in lieu of that, they can rope in more people to invest.

 

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