With just Rs 100 per month, the impact on your monthly budget is minimal. This allows you to invest without significantly altering your lifestyle.
What if you were allowed to start investing in mutual funds with just Rs 100? It’s interesting, right? Well, the dreams of various investors have come true, thanks to a groundbreaking initiative by Tata Mutual Funds. Now, you can kickstart your investment journey with a mere Rs 100 through their Systematic Investment Plan (SIP).
Tata Mutual Fund has reduced the minimum application amount for SIP across all its plans to Rs 100 and multiples of that amount. The changes have been effective since December 18, 2023. The fund house communicated this alteration to its investors through an addendum, introducing Rs 100 SIP in Tata MF schemes.
The fund house also stated that the above revision will be implemented prospectively and shall remain in force until further notice. All other terms and conditions, along with the risk-o-meter of schemes, PRC Matrix of the SID & KIM cum application form, and SAI, read with other addendums if any, remain unchanged.
Following are the funds where you can start SIP:
| Scheme Name | Expense Ratio % | Fund Managers | Returns % | |
| 1 Yr | 3 Yrs | |||
| Tata Balanced Advantage Fund | 0.30 | Akhil Mittal, Sailesh Jain Rahul Singh | 21.87 | 13.65 |
| Tata Banking and Financial Services Fund | 0.51 | Amey Sathe | 24.40 | 41.26 |
| Tata Business Cycle Fund | 0.37 | Sailesh Jain Murthy Nagarajan, Rahul Singh | 46.66 | – |
| Tata Digital India Fund | 0.31 | Meeta Shetty | 36.33 | 22.45 |
| Tata Dividend Yield Fund | 0.52 | Sailesh Jain | 40.70 | – |
| Tata Equity P/E Fund | 0.83 | Sonam Udasi, Amey Sathe | 48.20 | 22.22 |
| Tata Equity Savings Fund | 0.42 | Murthy Nagarajan, Tapan Patel | 14.60 | 8.90 |
| Tata Ethical Fund | 0.78 | Abhinav Sharma | 29.30 | 19.50 |
| Tata Flexi Cap Fund | 0.69 | Amey Sathe, Aditya Bagul | 32.80 | 15.00 |
| Tata Focused Equity Fund | 0.55 | Meeta Shetty | 35.90 | 19.10 |
| Tata Housing Opportunities Fund | 0.69 | Murthy Nagarajan, Tejas Guthka | 37.60 | – |
| Tata Hybrid Equity Fund | 0.97 | Satish Chandra, Chandraprakash, Murthy | 21.40 | 14.20 |
| Tata India Consumer Fund | 0.80 | Sonam Udasi, Aditya Bagul | 36.90 | 20.00 |
| 0.85 | Meeta Shetty | 55.70 | 19.90 | |
| Tata Infrastructure Fund | 1.29 | Abhinav Sharma | 58.60 | 32.10 |
| 0.75 | Chandraprakash, Meeta Shetty | 30.60 | 18.80 | |
| Tata Large Cap Fund | 1.15 | Abhinav Sharma | 29.30 | 16.20 |
| Tata Mid Cap Growth Fund | 0.79 | Satish Chandra | 49.40 | 24.60 |
| Tata Multi Asset Opportunities Fund | 0.40 | Tapan Patel, Murthy, Rahul, Sailesh | 24.80 | 16.50 |
| Tata Quant Fund | 0.89 | Sailesh Jain | 26.90 | 12.40 |
| 0.82 | Satish Chandra | 43.10 | 24.50 | |
| Tata Small Cap Fund | 0.31 | Jeetendra Khatri, Chandraprakash | 44.70 | 34.10 |
Investing in a SIP with just Rs 100 per month can offer several benefits, including:
- Affordability: Starting with a small amount like Rs 100 makes investing more accessible to a broader range of individuals. It allows even those with limited financial resources to participate in the stock market.
- Disciplined Saving: SIP encourages regular and disciplined saving. By committing to a fixed monthly investment, individuals cultivate a savings habit, which can lead to better financial discipline over time.
- Rupee Cost Averaging: SIP involves investing a fixed amount at regular intervals, regardless of market conditions. This strategy helps in averaging the purchase cost over time, reducing the impact of market volatility on your overall investment.
- Long-term Wealth Creation: Even small investments can grow significantly over the long term, thanks to the power of compounding. By consistently investing Rs 100 every month, you give your money more time to grow and benefit from compounding returns.
- Diversification: Even with a small investment amount, you can diversify your portfolio by investing in different mutual funds through SIPs. Diversification helps spread risk and can enhance the overall stability of your investment.
- Minimal Impact on Monthly Budget: With just Rs 100 per month, the impact on your monthly budget is minimal. This allows you to invest without significantly altering your lifestyle.
- Professional Management: Mutual funds, often chosen for SIP investments, are managed by professional fund managers who make investment decisions on behalf of investors. This expertise can potentially lead to better investment outcomes.
Conclusion
In conclusion, initiating a SIP with a modest amount of just Rs 100 per month offers a plethora of advantages for investors. This approach not only makes investing financially inclusive but also instils disciplined saving habits. The benefits of rupee cost averaging, long-term wealth creation, and the mitigation of market timing risks make SIP an attractive option for individuals seeking to build a robust financial portfolio.
Dreaming of financial freedom? Use our Online SIP Calculator to see how regular investments can add up to grow wealth. Take the first step towards your goals. Calculate now!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
