Think about investments, and what comes to mind? Perhaps substantial sums of money, complex processes, and high risks. Systematic Investment Plans (SIPs) break those stereotypes. It is a simple and effective way to invest your money in mutual funds regularly and grow your wealth without burning a hole in your pocket. All you need is Rs. 100 and a little bit of discipline. The process is effortless, uncomplicated, and can be completed online with just a few clicks.
For those struggling to commit hefty amounts every month due to bills, loans, everyday expenses, and other financial obligations, SIP starting from just 100 rs is a useful alternative. This way, they can reap the benefit of investing while staying within your budget.
How to start an SIP investment with Rs. 100?
To initiate an SIP investment with just Rs. 100, follow these steps:
Research and select: Examine the SIP mutual funds offered by various banks and mutual fund houses. Look out for those options that allow a minimum contribution of Rs. 100. Assess their past performance, risk levels, investment strategy, portfolio allocation, and other crucial factors to narrow down the suitable ones. Based on this analysis, make your selection.
Document gathering: Typically, you will need documents like Aadhaar card, PAN Card, address proof, etc. Bank account details will also be required for transaction purposes. Keep digital or physical copies of these documents ready for a smooth application process.
Use an SIP calculator: Before submitting the form online, use an SIP calculator to check the growth of your SIP investment. The tool provides a clear picture of how your modest investment of Rs. 100 can multiply over time. Input the investment amount, expected returns, and tenure, and see the maturity value. This invaluable information allows you to make calculative decisions, such as choosing the ideal tenure or determining which SIP annual return rate aligns with your goals.
Online application process: You have two main routes for application – online and offline. However, the online process is more convenient and accessible. Simply visit the official website of the bank and mutual fund house or use an investment app. Go to the mutual fund section, browse SIP mutual funds, and click on the one you find that fits your goals. Now follow the instructions for form submission and upload digital copies of your documents.
Set up the auto-debit facility: This facility allows automatic transfer of Rs. 100 from your bank account at predetermined intervals. Discuss with the bank or mutual fund house about how to set up this facility. You can even set it up online through online platforms. Now set up your SIP investment frequency and the date of the monthly auto-debit. After that, your bank will handle the periodic transfer, requiring no manual effort from your side.
So, this is how to start an SIP investment with just Rs. 100. After completing these steps, your bank account will see a deduction of Rs. 100 invested in your selected scheme at your chosen intervals.
Ending note
Starting an SIP investment with just Rs. 100 is a good option for investors who want to begin investing with limited funds. Remember to invest consistently, no matter how small the contributions are is, as small investments can add up over time. Don’t let the modest start hold you back. If your finances improve in the future, you can opt for a step-up SIP and increase your contributions periodically. This way, you can keep your investments with your income capacity and evolving risk tolerance.