🏦 How to Start SIPs (Systematic Investment Plans) with Just ₹100: A Beginner’s Guide

Author: Smart Money Moves Team
📅 Updated: June 2025
Reading Time: 8-10 Minutes

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A simple visual of SIP concept with a piggy bank, coins, and graph

Caption: Start investing with just ₹100: The power of SIPs explained visually

📘 Introduction

Do you think investing is only for the rich?

Most students, young earners, and beginners believe that investing requires thousands of rupees. But what if we told you that you can start your financial journey with just ₹100 per month?

Yes, that's the magic of SIPs – Systematic Investment Plans.

This blog will walk you through the complete beginner-friendly process of starting an SIP with as little as ₹100 — even if you’ve never invested before. No confusing jargon, no pressure — just simple, step-by-step guidance.

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💡 What is an SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in a mutual fund scheme. It helps you build wealth over time by investing small amounts consistently, just like a recurring deposit — but with the potential of much better returns.

You can invest:

• Weekly

• Monthly (most common)

• Quarterly

Instead of putting ₹10,000 in one go, you invest ₹100 every month — and let your money grow with the power of compounding.

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🧠 Why SIPs Are a Great Option for Students and Beginners

1. ✅ Low Entry Point

You can start with just ₹100 in some mutual funds. That’s less than the cost of a pizza!

2. 💰 Builds Financial Discipline

Monthly SIPs automatically deduct from your account, helping you save before you spend.

3. 📈 Rupee Cost Averaging

SIPs invest your money at different market levels, balancing your risk. You buy more units when prices are low and fewer when prices are high.

4. 📊 Compounding Magic

Even small amounts, when invested regularly, can grow into a large corpus over the years.

A chart showing SIP returns over 10 years with ₹100/month

Caption: How ₹100 per month grows in 10 years with 12% returns

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📱 Can You Really Start an SIP with ₹100?

Yes! Thanks to fintech platforms and simplified mutual fund options, many mutual fund houses in India allow you to start SIPs with a minimum of ₹100.

Here are a few examples:

Mutual Fund Scheme	Minimum SIP Amount	Type
SBI Magnum Taxgain Fund	₹100	ELSS
Axis Long Term Equity Fund	₹100	ELSS
ICICI Prudential Bluechip Fund	₹100	Equity
Nippon India Small Cap Fund	₹100	Equity

(Please confirm current limits before investing — schemes may update minimum amounts.)

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🧭 Step-by-Step: How to Start SIP with ₹100

🔹 Step 1: Complete Your KYC

To invest in mutual funds in India, you must complete Know Your Customer (KYC) verification.

You can do this:

• Online via apps like Zerodha Coin, Groww, ET Money, Kuvera, etc.

• Offline via visiting an AMC or bank branch

📝 Documents Needed:

• PAN Card

• Aadhaar Card

• Selfie or Live Photo (for some apps)

• Bank Details (for auto-debit setup)

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🔹 Step 2: Choose a Trusted App or Platform

Popular platforms to start SIPs with ₹100:

• Groww

• ET Money

• Zerodha Coin

• Paytm Money

• Kuvera

• AMC websites (like SBI MF, HDFC MF)

Most of these are free with zero commission for direct mutual funds.

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🔹 Step 3: Select the Right Fund

For beginners:

• Equity Funds: High returns but long-term

• Hybrid Funds: Balanced risk

• Debt Funds: Low risk, steady returns

• ELSS (Tax Saving): Lock-in of 3 years, tax benefits

🎯 Best SIP for ₹100/month (2025 Edition):

• Axis Bluechip Fund (Direct Plan - Growth)

• Nippon India Small Cap Fund (Direct Plan)

• UTI Nifty Index Fund (Direct Plan)

Screenshot of SIP selection screen from Groww app

Caption: Choose a mutual fund from a trusted app like Groww or Coin

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🔹 Step 4: Set Up SIP

1. Select the fund

2. Click on “Start SIP”

3. Enter amount (₹100)

4. Set start date & frequency (monthly is best)

5. Link your bank account (via auto-debit mandate)

Done! Your SIP is now live. 🎉

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🔄 Example: How ₹100 per Month Grows in 10 Years

Year	Total Invested	Approx. Value (12% Return)
1	₹1,200	₹1,260
5	₹6,000	₹8,130
10	₹12,000	₹23,000+

Note: Returns depend on market performance and fund selection.

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🛡️ Is SIP Safe for Students?

Yes, SIPs are one of the safest ways to invest in mutual funds for the long-term. However, remember:

• SIPs are subject to market risk

• Never invest money needed in the short term

• Always go for long-term (3+ years) to see real growth

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🎓 SIP vs Savings Account: Which is Better?

Feature	SIP	Savings Account
Return Rate	10-14% (average)	2.5-4%
Risk	Moderate	Very Low
Liquidity	1-2 days (except ELSS)	Instant
Discipline	High (auto-debit)	Low

👉 For students, combining both is a smart move — SIP for long-term, savings for emergencies.

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Illustration showing comparison of SIP vs Savings Account

Caption: SIP vs Savings: Where should your ₹100 go?

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💬 Real-Life Story: Rohan's ₹100 SIP Journey

Rohan, a 20-year-old college student from Bhopal, started a SIP of ₹100/month in 2020 using Groww.

Today (2025), his investment of ₹6,000 is worth over ₹9,000. More importantly, he built a strong saving habit, and now invests ₹1,000/month.

“I never imagined ₹100 a month would change my mindset about money,” he says.

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🔚 Final Thoughts: Start Small, Think Big

Starting small is not a weakness — it’s a wise and courageous beginning.

A SIP of ₹100 might seem tiny today, but in the long run, it builds discipline, wealth, and financial freedom.

“The best time to plant a tree was 20 years ago. The second-best time is now.” — Chinese Proverb

So, don’t wait for “more money.” Start now — start with ₹100.

Motivational image of a student planting a seed with money tree growing

Caption: Plant the seed of wealth today – even if it’s just ₹100

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✅ Key Takeaways

• SIPs let you start investing with just ₹100/month

• Complete KYC and use trusted apps

• Choose beginner-friendly mutual funds

• Stay invested long-term for best returns

• Build financial habits early

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📢 Do This Now!

👉 Choose your SIP platform
👉 Pick a ₹100-friendly fund
👉 Set your SIP date
👉 Tell your friends: “Even you can invest!”

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