Invest smart with SBI JanNiveshSIP: How Rs 250 monthly can turn into Rs 17 lakh

People often find themselves reflecting on missed opportunities, wondering why they didn’t make different choices when they had the chance. For instance, many will readily spend Rs 500 on a trendy sandwich that costs just Rs 50 from a popular vendor, without a second thought. Yet, when it comes to investing their money, hesitation sets in. The world of banking and finance can seem overwhelming and confusing. But no worry, we’ll help you understand how to navigate the world of investing and take advantage of opportunities like SIPs, making it easier for you to start building your financial future.

Here’s How It Works (SBI JanNivesh SIP)

SBI Mutual Fund has introduced the JanNivesh SIP, which makes investing easier and allows anyone to start with just Rs 250 a month. Investors have the flexibility to choose how often they want to invest—daily, weekly, or monthly—and they need to make at least 60 contributions.

A modest investment of Rs 250 per month can accumulate to a significant amount over time. 

For instance, with an expected annual return of 15%, a monthly SIP of Rs 250 over 30 years could grow to around Rs 17.30 lakh. If the investment period is lengthened to 45 years, the total could increase to Rs 1.63 crore. However, it’s important to remember that these calculations do not consider inflation, which can affect the real value of the accumulated amount.

On the other hand, with a lower expected return of 10% per year, a monthly SIP of Rs 250 for 30 years would yield approximately Rs 5.65 lakh. This demonstrates that regular investing can significantly contribute to building a solid financial base over time.

Mutual fund investors can also use the future value formula to calculate the potential future value of their SIP investments. This formula provides a rough estimate of how the monthly contributions will grow over a specific duration.

Future Value (FV) = P [ (1+i)^n-1 ] * (1+i)/i

Where;

FV: Future value or the total amount received upon maturity.

P: Amount invested through SIP.

i: Compounded rate of return.

n: Duration of investment in months.

MAIN HIGHLIGHTS:

Investors have the opportunity to start investing with as little as Rs 250 each month, making this a cost-effective choice. The JanNivesh SIP allows for investments to be made daily, weekly, or monthly.

Accessing this SIP is straightforward, as it will be available through the SBI YONO app and popular fintech platforms like Paytm, Groww, and Zerodha, which makes it easy for investors to oversee their investments.

This initiative is crafted to be both affordable and sustainable, ensuring consistent growth for smaller investors.

Challa Sreenivasulu Setty, the Chairman of the State Bank of India mentioned, “Through the JanNivesh SIP on our YONO app, we aim to empower more customers with innovative investment opportunities while promoting financial inclusion.”

Nand Kishore, the MD & CEO of SBI Mutual Fund added, “JanNivesh SIP is a significant step toward democratizing wealth creation and advancing financial inclusion in India. By lowering the barriers to entry and utilizing digital platforms, we hope to engage first-time investors, small savers, and those in the informal sector, starting with SIPs at just Rs. 250.”