1. Introduction to SIP
A Systematic Investment Plan (SIP) is a disciplined method of investing in mutual funds. You invest a fixed amount at regular intervals (monthly, weekly, etc.) instead of a lump sum. SIPs bring discipline, regularity, and ease to wealth creation.
SIPs are popular among salaried individuals, students, housewives, and even daily wage earners. Why? Because SIPs are flexible, affordable, and effective, especially now that you can start with as little as ₹100 per month.
2. Why SIP is a Powerful Investment Tool
SIP is not just about investing money—it’s about building a long-term habit of savings and investing. Here’s why SIPs are powerful:
- Discipline: Encourages regular savings.
- Rupee Cost Averaging: Buys more units when prices are low.
- Power of Compounding: Over time, your investment grows significantly.
- Low Barrier to Entry: Start with just ₹100.
- Emotional Stability: Reduces impulsive financial decisions.
3. Starting SIP with Just ₹100: A Game Changer
Traditionally, SIPs required a minimum of ₹500 or ₹1,000. But now, many mutual fund houses allow SIPs from ₹100, making investment accessible to students, small earners, and daily wage workers.
It breaks the myth that “you need a lot of money to start investing.”
4. How SIP Works
Let’s understand SIP with a simple example:
- You invest ₹100 every month into a mutual fund.
- Each month, your money is used to buy “units” of that fund.
- Over time, your ₹100 SIP may grow into thousands or lakhs, depending on the market returns and duration.
For example:
- ₹100 per month for 10 years @ 12% annual return = ₹23,000+
- ₹100 per month for 20 years @ 12% = ₹98,000+
5. Benefits of SIP
Here’s a full list of benefits for SIPs, even starting with ₹100:
- Affordability
- Flexibility
- Auto-Debit facility
- No need to time the market
- Reduces risk
- Better for long-term goals
- Tax-saving options
- Peace of mind
6. Types of Mutual Funds You Can Start with ₹100
Here are categories where ₹100 SIP is accepted:
- Equity Mutual Funds (High returns)
- Debt Mutual Funds (Low risk)
- Balanced/Hybrid Funds
- ELSS Funds (Tax saving)
- Index Funds
- Thematic/Sectoral Funds
7. How to Choose the Right Fund
Choosing the right fund depends on:
- Your goal: Retirement, emergency fund, child’s education.
- Risk level: Conservative, moderate, or aggressive.
- Time Horizon: 1 year, 5 years, 10+ years.
- Fund Performance
- Fund Manager experience
You can compare using websites like:
- Groww
- Zerodha Coin
- Paytm Money
- ET Money
- Moneycontrol
8. Top ₹100 SIP Mutual Funds in India (2025 List)
Here are some top-performing funds you can start with ₹100:
| Fund Name | Category | 5-Year Return (approx.) |
|---|---|---|
| Navi Nifty 50 Index Fund | Index | 14.2% |
| Quant Active Fund | Multicap | 18.3% |
| Axis Bluechip Fund | Large Cap | 12.5% |
| Parag Parikh Flexi Cap Fund | Flexi Cap | 16.7% |
| Mirae Asset Large Cap | Large Cap | 14.1% |
9. SIP vs Lump Sum Investment
| Feature | SIP | Lump Sum |
|---|---|---|
| Entry Point | Monthly investment | One-time |
| Risk | Lower | Higher |
| Flexibility | High | Low |
| Suitable For | Beginners | Experienced investors |
| Market Timing | Not required | Crucial |
SIP wins for most beginners.
10. How to Start a SIP Online
Follow these simple steps:
- Choose a platform: Groww, Zerodha, Paytm Money, Coin, ET Money.
- Complete KYC: PAN card, Aadhaar, Bank Details.
- Select Mutual Fund: Choose based on goals and performance.
- Choose SIP Date and Amount: Start with ₹100.
- Set Auto-Debit: Link your bank account.
- Track Performance Monthly
11. SIP with UPI: A Step-by-Step Guide
Many apps support UPI-based SIP now.
Steps:
- Select “UPI Payment” while starting SIP.
- Enter your UPI ID (e.g., 98765xxxx@upi)
- Approve the UPI request on your app (Google Pay, PhonePe, Paytm).
- Auto-debit begins on the SIP date.
No need to share bank account details!
12. Risks in SIP and How to Manage Them
Risks are lower in SIPs, but still present:
- Market Volatility: Minimized with long-term investing.
- Fund Performance: Track regularly.
- Inflation Risk: Choose equity funds for long-term.
- Redemption Lock-In: ELSS has 3-year lock-in.
Manage risk by diversifying and staying invested for longer.
13. The Power of Compounding with ₹100 SIP
Albert Einstein called compounding the “8th wonder of the world.”
Example:
- ₹100/month for 30 years @12% = ₹3.5 lakhs+
- ₹500/month for 30 years @12% = ₹17.7 lakhs+
Even small investments grow big over time.
14. SIP Investment for Students and Low-Income Groups
If you’re a:
- Student
- Part-time worker
- Daily wage earner
SIP of ₹100/month builds the discipline you need for future wealth. Focus on:
- Index Funds (Low cost)
- Hybrid Funds (Balanced)
Even pocket money can be invested.
15. Tax Benefits of SIP Investments
ELSS Funds
- Invest ₹100/month in ELSS = Tax deduction under Section 80C
- Lock-in period = 3 years
- Returns are tax-free up to ₹1 lakh annually
This is great for tax-saving + investing.
16. SIP in ELSS Funds
Top ELSS funds accepting ₹100 SIP:
- Axis Long Term Equity Fund
- Mirae Asset Tax Saver Fund
- Quant Tax Plan
- DSP Tax Saver Fund
These funds give good returns + tax deduction.
17. Case Studies: Real People, Real Returns
Case 1: Raju (Tea Vendor)
- Invested ₹100/month for 10 years in a hybrid fund.
- Grew to ₹25,000+
- Used it for daughter’s school admission.
Case 2: Meena (College Student)
- Started ₹100 SIP in Index Fund at age 19
- At age 30, has corpus of ₹1.5 lakhs
- All from pocket money savings
Case 3: Ravi (Delivery Partner)
- ₹100 SIP across 3 funds
- ₹300/month = ₹1,00,000+ over 15 years
18. SIP Myths and Truths
| Myth | Truth |
|---|---|
| You need ₹1000+ to start SIP | You can start with ₹100 |
| SIP guarantees return | Returns are market-linked |
| SIPs are for experts | SIPs are perfect for beginners |
| Stop SIP if market falls | Keep investing—buy low! |
| Only rich people invest | SIP is for everyone |
19. FAQs about Starting SIP with ₹100
Q: Can I really start SIP with ₹100?
Yes. Many AMC platforms offer ₹100 SIP.
Q: Is ₹100 enough?
It’s a start. You can increase it later.
Q: Can I stop anytime?
Yes. SIPs are flexible and can be paused or stopped anytime (except ELSS).
Q: Do I need PAN card?
Yes, PAN and Aadhaar are needed for KYC.
Q: What is the best SIP fund for ₹100?
Start with low-risk index funds or hybrid funds.
20. Final Thoughts and Recommendations
Starting a SIP with ₹100 is more than just investing—it’s a financial revolution. It democratizes investing, allowing anyone—regardless of income—to participate in wealth creation.
Start today. Don’t wait for ₹1,000 or ₹10,000. Even the journey to a million starts with ₹100.
