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. The 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 the most favourable.
Seeking to tap a more significant number of small investors, the industry is going all out with investment plans as low as Rs100 SIP on the 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.
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.
Top Mutual Funds to Invest With Rs. 100 Minimum SIP
S.No. | Mutual Funds to Invest With Rs. 100 Minimum SIP |
1. | ICICI Prudential Technology Direct Plan-Growth |
2. | Aditya Birla Sun Life Digital India Fund Direct-Growth |
3. | Nippon India Small Cap Fund Direct-Growth |
4. | ICICI Prudential All Seasons Bond Fund Direct Plan-Growth |
5. |
Factors To Consider Before Investing in Funds With Rs. 100 Minimum SIP
If you are considering investing in a scheme with a minimum subscription of Rs. 100, 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 Rs. 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.
Best Funds: Overview
1) ICICI Prudential Technology Direct Plan-Growth
ICICI Prudential Technology Direct Plan-Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. The ICICI Prudential Technology Direct Plan-Growth is rated Very High Risk. The minimum SIP Investment is set to ₹100.
The scheme will seek long-term capital appreciation by investing in equity and equity-related securities of technology and technology-dependent companies. A large share of the AUM will be invested in the stocks under the Benchmark Index. However, the scheme may also invest in other companies forming part of the Information Technology Services Industry.
2) Aditya Birla Sun Life Digital India Fund Direct-Growth
Aditya Birla Sun Life Digital India Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994.
The fund seeks capital growth, with a secondary objective of income generation focused on technology and technology-dependent companies. The scheme will follow a bottom-up approach to stock picking, adopting a blend of value and growth investing styles.
3) Nippon India Small Cap Fund Direct-Growth
Nippon India Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995.
The scheme seeks to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies.
4) ICICI Prudential Retirement Fund Hybrid Aggressive Plan Direct-Growth
ICICI Prudential Retirement Fund Hybrid Aggressive Plan Direct-Growth is a Solution Oriented Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.
The scheme invests in equity and equity-related securities to generate capital appreciation. In addition, the scheme may also invest in Debt, Gold/Gold ETF/units of REITs & InvITs, and other asset classes as may be permitted from time to time for income generation/wealth creation.
5) ICICI Prudential Equity & Debt Fund Direct-Growth
ICICI Prudential Equity & Debt Fund Direct-Growth is a Hybrid Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.
The scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio of equities and related securities as well as fixed-income and money market securities.
You may also want to know the Top Mutual Funds for SIP to Invest
Wrapping Up
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.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
To read the RA disclaimer, please clickhere
Research Analyst - Bavadharini KS
As a seasoned financial analyst and enthusiast with a comprehensive understanding of mutual funds and systematic investment plans (SIPs), I bring forth a wealth of knowledge and expertise to guide you through the intricacies of this investment avenue. My insights are not merely theoretical but are grounded in practical experience, allowing me to navigate the complexities of the financial markets with confidence.
Let's delve into the concepts mentioned in the article:
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Systematic Investment Plan (SIP):
- Definition: SIP is a method of investing in mutual funds where an investor contributes a fixed amount at regular intervals, typically monthly. This disciplined approach helps in avoiding market timing issues.
- Benefit: The article highlights the benefit of rupee cost averaging, where investing a fixed amount regularly results in buying more units when prices are low and fewer units when prices are high.
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Micro-SIP Revolution:
- Concept: The article introduces the concept of micro-SIP, enabling even individuals with limited financial resources, such as daily wage earners in rural India, to participate in the equity markets.
- Significance: This democratization of investment opportunities emphasizes financial inclusion and broadening access to the capital markets.
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Minimum SIP of Rs. 100:
- Accessibility: The article lists mutual fund schemes with a minimum SIP investment of Rs. 100, making mutual fund investments accessible to a wider range of investors.
- Rupee Cost Averaging: The affordability of Rs. 100 SIPs facilitates the use of rupee cost averaging, further emphasized as a favorable strategy for investors.
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Top Mutual Funds for Rs. 100 Minimum SIP:
- Examples: The article provides a list of mutual funds with a minimum SIP of Rs. 100, including ICICI Prudential Technology, Aditya Birla Sun Life Digital India Fund, Nippon India Small Cap Fund, and others.
- Investment Objectives: Each fund has a specific investment objective, such as capital appreciation in technology companies (ICICI Prudential Technology) or focusing on small-cap companies (Nippon India Small Cap Fund).
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Factors to Consider Before Investing:
- Risk Appetite: Investors are advised to assess their risk appetite before choosing a scheme with a minimum subscription of Rs. 100.
- Investment Goal and Horizon: Consideration of investment goals and time horizons is crucial to align the chosen scheme with individual financial objectives.
- Performance, Credentials, and Expenses: Investors are encouraged to evaluate the performance, credentials of the fund house, and associated expenses before making investment decisions.
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Overview of Selected Mutual Funds:
- The article provides brief overviews of selected mutual funds, including their launch dates, risk ratings, and investment objectives.
- Examples include ICICI Prudential Technology Direct Plan-Growth, Aditya Birla Sun Life Digital India Fund Direct-Growth, and Nippon India Small Cap Fund Direct-Growth.
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Investment at Rs. 100 per Month:
- Inclusivity: The article emphasizes the inclusivity of mutual fund investments, catering to economically lower segments, young professionals, and students with smaller investment capacities.
- Ambit Expansion: Keeping the minimum investment requirement low expands the scope of mutual fund participation.
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Disclaimer:
- Educational Purpose: The article concludes with a disclaimer stating that the content is solely for educational purposes, and the mentioned securities/investments are not recommendatory.
In conclusion, the article provides a comprehensive overview of SIPs, highlights the inclusivity brought about by micro-SIPs, recommends specific funds with a minimum SIP of Rs. 100, and guides investors on factors to consider before making investment decisions.
