Top Mutual Funds to Invest With ₹100 SIP

With the benefit of rupee cost averaging, investing in mutual funds via SIP have become one of the most favourable modes of investing. 

With mutual funds schemes that require a minimum SIP amount of ₹100, the mutual fund industry has taken the micro-SIP revolution to rural India, where even a daily wage earner can participate in India’s equity markets.

Moreover, with the entry-level of SIP at ₹ 100 per month, investors would be in a better position to use ‘rupee cost averaging’ as investments regularly spread over time would result in the average cost per unit coming down.

This blog discusses the top mutual funds to invest with ₹100 based on 3Y annualised returns. 

Best Mutual Funds To Invest With a ₹100 SIP

Here are some of the best performing mutual funds with a minimum SIP investment of ₹100 based on their 3-year annualised returns -

Overview

HDFC Infrastructure Direct Plan Growth

• 3-Y annualised returns: 29.82%
• AUM: ₹2,104.89Cr
• Expense Ratio: 1.04%
• Asset Allocation
• Equity: 91.4%
• Cash: 6.5%

ICICI Prudential Infrastructure Direct Growth

• 3-Y annualised returns: 29.26%
• AUM: ₹6,886.49Cr
• Expense Ratio: 1.16%
• Asset Allocation
• Equity: 93.4%
• Cash: 5.1%
• Debt: 0.9%

Aditya Birla Sun Life PSU Equity Fund Direct Growth

• 3-Y annualised returns: 29.25%
• AUM: ₹4,650.81Cr
• Expense Ratio: 0.54%
• Asset Allocation
• Equity: 95.8%
• Cash: 4.2%

Nippon India Power & Infra Fund Direct Growth

• 3-Y annualised returns: 28.95%
• AUM: ₹6,125.29Cr
• Expense Ratio: 1.03%
• Asset Allocation
• Equity: 98.8%
• Cash: 1.1%

Bandhan Infrastructure Fund Direct Plan Growth

• 3-Y annualised returns: 27.73%
• AUM: ₹1,399.72Cr
• Expense Ratio: 0.87%
• Asset Allocation
• Equity: 97.6%
• Cash: 2.4%

DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms Fund) Direct Growth

• 3-Y annualised returns: 29.82%
• AUM: ₹4,464.74Cr
• Expense Ratio: 0.82%
• Asset Allocation
• Equity: 84.2%
• Cash: 14.9%

HDFC Mid Cap Opportunities Direct Plan Growth

• 3-Y annualised returns: 24.93%
• AUM: ₹67,578.59Cr
• Expense Ratio: 0.83%
• Asset Allocation
• Equity: 92.5%
• Cash: 7.5%

ICICI Prudential India Opportunities Fund Direct Growth

• 3-Y annualised returns: 24.43%
• AUM: ₹23,859.65Cr
• Expense Ratio: 0.69%
• Asset Allocation
• Equity: 94.0%
• Cash: 3.6%
• Debt: 2.3%

ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Growth

• 3-Y annualised returns: 24.02%
• AUM: ₹4,611.47Cr
• Expense Ratio: 1.11%
• Asset Allocation
• Equity: 99.0%
• Cash: 1.0%

Factors To Consider

If you are considering starting a ₹100 SIP in a mutual fund, you need to be aware of the following factors:

Your Risk Appetite

The amount you invest will depend on how much risk you want to take and how much money you can afford to lose. A higher risk profile may require lower initial investments, but it might also require more frequent investments to maintain your investment goals.

Your Investment Goal and Horizon

If your goal is to earn interest on your investments and make regular contributions, then a scheme with a minimum subscription of ₹100 may not be appropriate for your needs. However, if, instead, your goal is to earn income from investments or make regular payments into one or multiple schemes, then this type of investment may be a good choice.

Performance of Scheme

You should consider the performance of a scheme before investing in it if you have any doubts about its ability to meet your needs or expectations.

Credentials of Fund House

SIPs are offered by many financial institutions, meaning it's essential to research the credentials of each one carefully. In addition, you'll want to ensure that the SIP can provide you with a good return on investment and that it has been established long enough to ensure stability.

Expenses

You'll need to consider these costs when deciding whether or not a SIP is suitable for you. If the fee is too high, it may not be worth investing in this fund.

Wrapping Up

To invest as low as ₹100 per month is one of the most remarkable features of mutual fund investments. Keeping the minimum requirement low automatically expands the ambit.

Those who fall under the economically lower rung circles, youngsters just entering the professional space, or even students who depend on pocket money from parents can opt for mutual fund investments. SIPs for ₹100, ₹500, and ₹1,000 per month are popular amongst various investor categories.

Mutual Funds Selection Criteria for Top Mutual Funds Listed Above

These mutual funds are listed based on the 3-year annualised returns. The selection is arranged in descending order. It is important to note that 3-year returns in no way guarantees a mutual fund’s performance. However, it can be used as a criterion for shortlisting mutual funds from within a category. Investors should recognise that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This mutual fund selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to invest in any mutual funds by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Bavadharini KS