How to Invest 100 RS in Mutual Funds
Seeking to tap a larger number of small investors, the industry is going all out with investment plans as low as Rs100 SIP in mutual funds list.
With Rs 100 SIP mutual fund schemes, 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. 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 some time would result in the average cost per unit coming down. We will get into the details of what is an SIP and what is meant by rupee cost averaging later in this blog.
Disclaimer: Here is a Rs 100 SIP in mutual funds list below. We have picked the top returning (3-year) funds which allow a minimum SIP investment of Rs 100 per month. This is for information purposes only. This is in no way a recommendation that returns should be considered foremost before making any investment.
Equity Funds
ICICI Prudential Technology Direct Plan – Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 5.88% | 45.92% | 40.09% |
For more information about the mutual fund, click here: ICICI Prudential Technology Direct Plan – Growth
Aditya Birla Sun Life Digital India Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 4.83% | 38.02% | 37.17% |
For more information about the mutual fund, click here: Aditya Birla Sun Life Digital India Fund Direct- Growth
Nippon India Small Cap Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 0.87% | 36.27% | 27.59% |
For more information about the mutual fund, click here: Nippon India Small Cap Fund Direct- Growth
Debt Funds
IDFC Dynamic Bond Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | -0.14% | 6.37% | 9.19% |
For more information about the mutual fund, click here: IDFC Dynamic Bond Fund Direct- Growth
ICICI Prudential All Seasons Bond Fund Direct Plan- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | -0.27% | 5.53% | 9.05% |
For more information about the mutual fund, click here: ICICI Prudential All Seasons Bond Fund Direct Plan- Growth
Nippon India Nivesh Lakshya Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | -0.62% | 3.23% | 9.01% |
For more information about the mutual fund, click here: Nippon India Nivesh Lakshya Fund Direct- Growth
Hybrid Funds
ICICI Prudential Equity & Debt Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 0.37% | 27.17% | 19.00% |
For more information about the mutual fund, click here: ICICI Prudential Equity & Debt Fund Direct- Growth
ICICI Prudential Multi Asset Fund Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 1.00% | 25.74% | 17.78% |
For more information about the mutual fund, click here: ICICI Prudential Multi Asset Fund Direct- Growth
ICICI Prudential Retirement Fund- Hybrid Aggressive Plan Direct- Growth
| Time Period | 1 Month | 1 Year | 3 Year |
| Return | 0.13% | 15.37% | 14.97% |
For more information about the mutual fund, click here: ICICI Prudential Retirement Fund- Hybrid Aggressive Plan Direct- Growth
This is not a comprehensive minimum Rs 100 SIP in mutual funds list.
What is SIP?
Mutual funds come with the option of a Systematic Investment Plan (SIP). It is a way of investing money in mutual funds at regular intervals. Most famous frequency is monthly. Rs 100 SIP, mutual fund schemes, make mutual funds approachable. With the benefit of rupee cost averaging, investing in mutual funds via the SIP mode becomes most favourable.
During volatile market situations such as right now, an SIP becomes a blessing in disguise for a common investor. More units of the subscribed fund can be purchased at the corrected/ lower price. Thereby investors get their units at a lower average cost and therefore, higher returns when the market situation improves.
Minimum SIP amount can be as low as Rs 100 so that maximum people can start investing in mutual funds. Here’s the list of top funds with a minimum SIP amount of ₹ 100.
What is Rupee Cost Averaging?
In literal terms, rupee cost averaging means when your investment can average the fluctuations in the cost of the rupee over a longer period and SIPs do that very efficiently.
When you invest in a mutual fund, a certain number of units gets credited to your mutual fund folio. The number of units that get credited is dependent on the NAV of the fund.
Example
SIP Month 1
Investment amount: Rs 100
NAV: Rs 20 per unit
Number of units for month 1: 5
SIP Month 2
Investment amount: Rs 100
NAV: Rs 10 per unit
Number of units for month 2: 10
Total number of units at the end of month 2: 15 units
Therefore, the number of units getting credited to your fund rises when the NAV falls—the value of your investment increases when the NAV increases. Thus, SIP helps to average out short term fluctuations over a long period.
Final Words
To be able to invest as low as Rs 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 Rs 100, Rs 500 and Rs 1,000 per month are popular amongst various investor categories.
