PPFAS Mutual Fund has introduced a new facility called Choti SIP. This allows investors to start a monthly Systematic Investment Plan with an amount as low as ₹250 across five of its schemes commencing from May 21, 2026.
The Choti SIP is now available in several PPFAS Mutual Fund schemes, including the Parag Parikh Flexi Cap Fund, Parag Parikh Large Cap Fund, Parag Parikh Conservative Hybrid Fund, Parag Parikh Arbitrage Fund, and Parag Parikh Dynamic Asset Allocation Fund. This initiative primarily targets individuals new to mutual fund investments, excluding minors.
The Choti SIP facility is only available under the growth option of the eligible schemes, and investors can opt for either the direct or regular plan. Accepted payment modes for this scheme are restricted to NACH and UPI Auto Pay.
Registration for the Choti SIP mandates an instalment amount of ₹250, which must remain consistent; otherwise, the registration will not be processed. Investors need to commit to at least 60 monthly instalments.
Registration for Choti SIP is open on all days of the month, and instalments are processed on business days. If an instalment is scheduled for a non-business day, it will proceed on the following business day.
Eligibility for the Choti SIP requires investors to be Know Your Customer (KYC) compliant, adhering to SEBI regulations. Incomplete or incorrectly filled applications may be rejected at the discretion of the Asset Management Company (AMC) or its Registrar.
In February 2025, the Association of Mutual Funds in India (AMFI) launched initiatives such as Choti SIP, Tarun Yojana, and MITRA to foster financial inclusion.
The ₹250 Choti SIP is particularly designed to make mutual fund investments more accessible for first-time investors and those from underserved communities.
PPFAS Mutual Fund has also announced changes to the Systematic Transfer Plan (STP) processing.
From May 21, 2026, the daily frequency (Monday to Friday) under the STP from the source scheme will only process on business days relevant to the scheme(s).
The Choti SIP by PPFAS Mutual Fund, with its low entry-level investment, aims to attract a wider investor base by making mutual fund investments more accessible. By introducing this facility, PPFAS encourages financial entry for new investors, supporting broader financial inclusion.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: May 25, 2026, 8:35 AM IST
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