Chhoti SIP: the ₹250 SIP, explained

A Chhoti SIP (“small SIP”) is a systematic investment plan of ₹250 per instalment, introduced through a SEBI initiative in February 2025 so that a first mutual fund investment can start with a very small amount. The mechanics are the same as any SIP: a fixed amount buys units at each instalment’s NAV. The ticket size and the conditions around it are what make it different.

Who it is meant for

A Chhoti SIP is meant for investors who are new to mutual funds. The fund house checks this when the SIP is registered, and its scheme addendum sets out the exact test. Someone who already invests in mutual funds starts an ordinary SIP instead, at the scheme’s usual minimum amount.

How many you can hold

Up to three Chhoti SIPs per investor, and only one with each fund house — so three Chhoti SIPs means three different fund houses.

Where it is offered, and where it is not

• Only in the Growth option.
• Not in debt schemes, sectoral or thematic schemes, or small cap and mid cap schemes.
• Each fund house decides which of its eligible schemes offer it.

How it is paid

Instalments are collected automatically, through a NACH mandate or UPI AutoPay (see how a bank mandate works). The design assumes the SIP runs for at least 60 instalments, but that is not a lock-in: the money can be withdrawn earlier, on the scheme’s usual terms, including any exit load.

What does not change

A smaller instalment does not mean smaller risk. The scheme is the same scheme, its value moves with the market, and the riskometer and scheme documents apply in full. The ₹250 lowers the amount needed to begin; it changes nothing else.

Source: SEBI letter SEBI/HO/IMD/PoD-1/OW/P/2025/5586/1, 20 February 2025, as set out in fund houses’ scheme addenda. Rules as at October 2026.