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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. This list was last updated on November 20, 2020.

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Equity Funds

Equity funds are those funds that mostly invest in stocks of different companies depending on categorisations laid down by Sebi. Down below is a Rs 100 SIP mutual fund list for subcategories of equity funds:

Large-Cap SIP
Invesco India Large Cap Fund
ICICI Prudential Bluechip Fund
Aditya Birla Sun life Frontline Equity Fund

 

Mid-Cap SIP
Nippon India Growth Fund
Sundaram Midcap Fund
ICICI Prudential Midcap Fund

 

Small-Cap SIP
Nippon India Small Cap Fund
ICICI Prudential Small Cap Fund
Sundaram Small Cap Fund

Debt Funds

Debt funds are those funds that mostly invest in bonds or money market instruments of different companies depending on categorisations laid down by Sebi. Down below is a Rs 100 SIP mutual fund list for subcategories of debt funds:

Liquid Fund SIP
Nippon India Liquid Fund
PGIM India Insta Cash Fund
ICICI Prudential Liquid Fund

Corporate Bond Fund SIP
Aditya Birla Sun Life Corporate Bond Fund
Nippon India Corporate Bond Fund
Invesco India Corporate Bond Fund

This is not a comprehensive minimum Rs 100 SIP in mutual funds list. There may be more funds and more sub-categories.

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, a 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.

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Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.