Money goals don’t have to start with big cheques. They can be small, steady decisions that feel doable, without compromising on the monthly expenses. The idea is simple, flexible, and fits real-life income patterns.
In a Systematic Investment Plan (SIP), investors invest a small, fixed amount of money regularly in mutual funds, and knowing the minimum investment in SIP helps in deciding how easily an investor can start, stay consistent, and plan without financial stress.
Read this blog to know the minimum investment in SIP, SEBI rules, fund house limits, and some examples of low-minimum SIP plans.
Systematic Investment Plan (SIP): Basic Understanding
Systematic Investment Plan (SIP) is a method of investment, which involves investing a fixed amount of money at predefined intervals, usually monthly or quarterly, into investment instruments or mutual funds.
Lately, it’s a popular way of investment for building wealth over the long term without needing a large lump sum payment or worrying about entry-exit timings. This growing preference is visible in the data as well, equity-oriented mutual fund schemes alone had over 17.7 Cr investor folios as of November 2025, showing how widely systematic investing has been adopted by retail investors
What Is the Minimum Investment in SIP?
The minimum investment in SIP usually starts at ₹500 per month, making it accessible to different investors. However, some mutual funds also offer lower entry points, sometimes as low as ₹100, while others might have higher minimums.
SEBI Norms for Minimum SIP Amount
The minimum SIP amount as per the SEBI norms sets the minimum instalment per month at ₹1,000 and ₹2,000 per quarter, and in multiples of ₹1 thereafter.
However, many mutual funds already allow investors to start SIPs as low as ₹100, and SEBI has proposed small-ticket SIPs at ₹250 in equities to widen the access and support small investments..
Typical Minimum SIP Amounts in India
The minimum SIP amount in India starts from ₹500 per month and can go up to ₹5,000 or more, depending on the fund type. The equity funds, such as Kotak Flexicap, SBI Large Cap, and Quant Small Cap, allow SIPs starting from ₹500. While some schemes require ₹1,000, such as Parag Parikh Flexi Cap and Nippon India Small Cap.
A few mutual funds also allow micro SIPs starting from ₹100, such as HDFC Infrastructure Direct Plan Growth and Aditya Birla Sun Life PSU Equity Fund Direct Growth, to attract first-time investors.
Factors That Determine Minimum SIP Amount
The minimum SIP amount is determined by these two important factors, which are: The fund house and the type of fund.
Fund House Policies & Scheme Rules
Each Asset Management Company (AMC) and its individual scheme decides its own minimum investment based on the costs and the investors it targets. That’s why limits differ. While some funds allow small SIPs starting at just ₹100, many popular schemes keep the entry level at ₹500 to ₹1,000 or more.
Type of Mutual Fund (Equity, Debt, Hybrid)
The mutual fund categories, equity, debt, and hybrid, also affect the minimum SIP investment amount. Most AMCs keep similar limits across equity, debt, and hybrid funds. However, specialized or HNI-focused funds, such as certain Specialized Investment Funds (SIFs), ask for much higher starting investments, sometimes ₹10 lakh or more.
Examples of Low‑Minimum SIP Plans
Here are some examples of SIP plans with a low minimum investment starting from ₹100.
| Fund Name | 3-year Returns | Fund Type | Minimum Investment |
| HDFC Infrastructure Direct Plan Growth | 29.82% | Equity Sectoral Fund | ₹100 |
| ICICI Prudential Infrastructure Direct Growth | 29.26% | Equity Sectoral Fund | ₹100 |
| Nippon India Power & Infra Fund Direct Growth | 28.95% | Equity Sectoral Fund | ₹100 |
| Motilal Oswal BSE Enhanced Value Index Fund Regular – Growth | 35.31% | Equity Index Fund | ₹500 |
| Bandhan Small Cap Fund Regular-Growth | 29.34% | Equity Small-cap Fund | ₹1,000 |
| ICICI Prudential Infrastructure Fund-Growth | 28.79% | Equity Sectoral Fund | ₹5,000 |
How to Start SIP With a Small Amount
Step 1: Prep the documents: Investors shall keep their PAN, ID proof, address proof, and correct bank details ready before investing.
Step 2: Get done with the KYC: Next, they need to complete the KYC online or offline by submitting personal details and valid documents.
Step 3: Register for SIP: After that, they need to register themselves with a broker platform or an advisor to start the SIP.
Step 4: Select the fund: Then select the SIP fund based on risk appetite, investment goal, and investor profile.
Step 5: Set the SIP amount: Decide the SIP amount depending on the income, expenses, and goals.
Step 6: Set SIP instalment date: Investors need to choose an SIP date on a monthly or quarterly basis, for auto-payment of the instalments.
Step 7: Submit Application Form: Finally, they submit the SIP form to activate the investment.
Advantages of Low‑Minimum SIPs
- Easy to start: Low-minimum SIPs allow the new investors to invest small amounts without waiting for large savings or income stability.
- Build an investing habit: Investing small sums regularly helps in developing discipline and consistency, which supports long-term wealth creation.
- Lower initial risk: Smaller investments reduce emotional and financial stress while allowing learning how market movements affect returns.
Limitations of Investing Small Amounts
- Slower wealth growth: Small investments take longer to create meaningful wealth, especially over short time horizons.
- Limited diversification: Lower amounts may restrict access to multiple funds, while increasing the concentration risk.
- Impact of costs: Expense ratios and taxes can eat into the returns more noticeably when the investment amounts are small.
Bottom line
Starting an SIP doesn’t need big amounts. With minimum investments ranging from ₹100 to ₹500, SIPs fit real incomes and real lives. What matters more than the amount is consistency. Investors shall start small, choose the right fund, stay invested, and scale up as their income grows, and that’s how long-term wealth is actually built.
FAQs
The minimum investment in SIP starts at ₹500 per month for most mutual funds. However, some schemes offer micro SIPs starting from ₹100 to attract first-time investors. On the other hand, certain funds may require ₹1,000 or more. The exact amount depends on the fund house and the specific scheme you choose.
SEBI sets standard guidelines, where the minimum SIP instalment is ₹1,000 monthly and ₹2,000 quarterly. However, many mutual funds already allow lower SIP amounts like ₹100 or ₹500. SEBI has also proposed small-ticket SIPs of ₹250 to increase investor participation and improve market access.
Yes, SIP amounts can be increased anytime using a SIP top-up or by starting a new SIP. This flexibility helps the investors to begin with a small amount and gradually invest more as income grows.
Yes, low-minimum SIPs work well for long-term goals if the investments remain consistent and are increased over time. While small amounts grow slowly initially, long investment horizons and compounding help build wealth.
No, not all mutual funds allow SIPs from ₹100. Only selected schemes, usually sectoral or promotional funds, offer such low entry points. Most popular equity and hybrid funds start SIPs at ₹500 or ₹1,000.
