PPFAS Mutual Fund has announced the introduction of choti SIP in Parag Parikh Flexi Cap Fund, Parag Parikh Large Cap Fund, and three other equity-oriented schemes with effect from May 21.

The fund house through a notice cum addendum said that it has been decided to introduce the Choti SIP facility in these five schemes – Parag Parikh Flexi Cap Fund, Parag Parikh Conservative Hybrid Fund, Parag Parikh Arbitrage Fund, Parag Parikh Dynamic Asset Allocation Fund, Parag Parikh Large Cap Fund.

Also Read | First-time investors should start with balanced funds and short-duration debt in first year: Anand Radhakrishnan, Sundaram MF

Choti SIP will be available only to individual investors new to the mutual fund industry (excluding minors) and will be restricted to first three SIPs (one each in up to 3 Asset Management Companies).

For the purpose of this facility, such eligibility shall be determined based on mechanisms as may be prescribed by SEBI/AMFI from time to time. Any future investments in the form of SIP (Other than Choti SIP) or lump sum shall be subject to the criteria specified in the SID of the respective scheme. However, SIPs registered as Choti SIPs at the time of investment shall continue to be treated as Choti SIPs.

Choti SIP offering is available only under the growth option of the respective eligible schemes. under both direct plan and regular plan. The mode of payment/investment for Choti SIP shall be restricted to NACH and UPI Auto Pay only.
The SIP registration amount shall be Rs 250 per instalment only. The SIP amount cannot be more or less than Rs 250, failing which the SIP registration will not be processed. The minimum number of instalments for availing Choti SIP shall be a total 60 instalments. Choti SIP shall be available only with Monthly instalment frequency.
Further, early withdrawal/redemption of the instalments is not restricted, subject to the provisions of the respective scheme, including exit load, as specified in the respective Scheme Information Document.

SIP registration and processing

Choti SIP can be registered on any day of the month. Instalment under Choti SIP will be processed only on business days. If the instalment under Choti SIP falls on a non-business day, it will be processed on the next business day. The Choti SIP facility shall be available only to Know Your Customer (KYC) compliant investors as prescribed under applicable SEBI regulations. Incomplete, invalid or incorrectly filled applications for Choti SIP may be rejected at the sole discretion of the AMC and/or its Registrar.

SIP Top-up and modify SIP facilities shall not be available under Choti SIP. Exit load, if any, shall be applicable as per the provisions of the respective Scheme Information Document (SID) of the scheme.

Also Read | Time to buy rupee assets? DSP Mutual Fund lists 5 reasons favouring Indian equities and bonds

In February 2025, the Association of Mutual Funds in India (AMFI) launched three strategic initiatives – choti SIP – Sachetization of Mutual Funds, Tarun Yojana, and MITRA – Mutual Fund Investment Tracing and Retrieval Assistant — to advance financial inclusion, promote investor awareness, and simplify trace and retrieve forgotten investment.

The choti SIP for Rs 250 is designed to make mutual fund investing more accessible, particularly for first-time investors and those from underserved segments.

Change in STP processing

The fund house also informed its unit holders that the ‘daily’ frequency (Monday to Friday) under Systematic Transfer Plan(STP) from the source scheme shall be processed only on business days of the respective scheme(s) with effect from May 21, 2026. This change will also be applicable to existing daily STPs registered prior to the effective date.

The AMC reserves the right to amend the terms and conditions of the STP, subject to applicable regulatory requirements. All other terms and conditions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the scheme(s) and Statement of Additional Information (SAI) of the fund shall remain unchanged. This addendum forms an integral part of the SAI of the Fund and the SIDs / KIMs of the above-mentioned schemes of the Fund, as amended from time to time.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on [email protected] alongwith your age, risk profile, and twitter handle

Add ET Logo as a Reliable and Trusted News Source