Planning for your child’s future doesn’t have to be expensive. SBI’s Child SIP / Jan Nivesh SIP, starting at only ₹250 per month, is designed to help parents build a long-term wealth corpus through disciplined investing. With the power of compounding, even a small monthly investment can grow into a large amount over time. Here’s a complete, Google Discover–friendly breakdown of how this plan works and how you can get started.
What Is SBI’s Child SIP?
SBI Mutual Fund offers a micro-SIP option under the Jan Nivesh initiative, allowing investors to begin SIP investments with as little as ₹250 per month. While not officially titled “Child SIP,” this plan is commonly chosen by parents for building a secure financial fund for their children’s education, marriage, or future dreams. The scheme works like a regular mutual fund SIP and can be started instantly through SBI YONO or the SBI Mutual Fund online portal.
How ₹250 Per Month Can Grow Over Time
The biggest benefit of the Child SIP is long-term compounding. If you invest ₹250 per month for several years, even a small amount can grow into a significant corpus. For example, at an assumed return of 12–15%, the investment may grow into several lakhs over 25–30 years. Although the term “millionaire” is motivational, actual returns depend on market performance. The longer you stay invested, the higher the potential growth.
Why Parents Prefer This SIP for Their Children
Parents choose the SBI Child SIP because it allows low-cost investing, long-term wealth building, and reliability from a trusted financial institution. This is especially beneficial for children who are young, as the investment horizon becomes longer. With as little as ₹250 monthly, families can begin planning for education, skill development, higher studies, or future financial security.
Key Features of the Child SIP
The plan offers a low entry barrier starting at ₹250 a month, and contributors can choose equity, hybrid or balanced fund options depending on risk level. SIPs are automatically debited from your bank account every month, offering disciplined investing without manual effort. Parents can increase their SIP amount anytime as income grows. The scheme is highly flexible and suitable for long-term goals.
How to Start the SIP Online
To start an SBI Child SIP, open the SBI YONO app or the SBI Mutual Fund website. Complete KYC verification for yourself and register your child’s details if required. Choose an appropriate fund, select the SIP amount (minimum ₹250), and link your bank account through auto-debit. Once activated, the SIP will start investing automatically every month.
Things to Remember Before Investing
SIPs grow best when you stay invested for many years. Investors must understand that mutual funds are market-linked and returns may vary. It’s important to check the fund’s performance, risk level, and suitability for your child’s future goals. Parents should review the SIP annually and increase the amount gradually to match long-term financial planning.
How to Maximize Returns for Your Child
Invest early to give your child a longer investment duration. Consider adding a step-up SIP option where the amount increases yearly. Avoid stopping or skipping SIPs unless necessary. Track long-term goals like higher education and adjust the SIP amount as your child’s needs change. Use online SIP calculators to estimate potential returns and growth.
Who Should Consider SBI Child SIP?
The scheme is ideal for parents, guardians, or even relatives who wish to create a dedicated fund for a child with minimal starting investment. Families with limited budgets but long-term goals benefit the most from this plan. The SIP also works well for gifting future savings to a newborn or young child.
Conclusion: With just ₹250 a month, SBI’s Child SIP makes long-term wealth creation simple and accessible for every family. By investing early and consistently, parents can build a substantial financial foundation for their child’s education and future opportunities. It is one of the most affordable and effective ways to plan your child’s financial future in 2025.
Disclaimer: Child SIP returns are market-linked and not guaranteed. Investors must review fund documents and risk factors before investing.
