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Mutual Funds SIPs That You Can Start With For Just Rs. 100

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SIPs or Systematic Investment Planning which entails disciplined and regular investing in mutual fund units can go a long way in creating a sizeable corpus for you for your different financial goals. All the more this route of investment in mutual funds becomes more affordable for investors as they do not need a whole lot of money and can tap on the investment avenue for as less as Rs. 100 also.

Mutual Funds SIPs That You Can Start With For Just Rs. 100
 

Interestingly, given the huge demand for lower investment amount in SIPs, many of the mutual fund houses have reduced minimum lump sum investment amount in a mutual fund scheme to Rs. 100. In the earlier regime, most fund houses would ask for a minimum of Rs. 500- Rs. 5000 as lump sum payment.

Here we suggest some funds in which you can start a SIP for as less as Rs. 100:

1. Nippon India Large Cap Fund - Growth: This is another fund that allows SIP investment for just Rs. 100. Against its category average return of 17.71%, the fund over a 1-year period has provided returns to the tune of 22.08%. The fund holds CRISIL ranking of 4-star and commands an AUM of Rs. 7269 crore. Expense ratio of the fund is 1.87%. The fund largely invests in mid-cap stocks and small-cap stocks and only a small portion i.e. to the tune of 9% is put in large-cap stocks.

Some of the major holdings of the fund include stocks like SRF, City Union Bank, Varun Beverages, Bharat Forge, Tata Power, Tata Global Beverages among others.

If you were to invest Rs. 1000 via SIP for different tenures in this fund, your returns would be as though:

On monthly SIP of Rs. 1000 Total Investment Latest value Absolute returns Annualised returns
1 year (SIP started on 12-feb-2019) 12000 13622.85 13.52% 25.75%
3 year (SIP started on 12-feb-2017) 36000 41302.31 14.73% 9.1%
5 year (SIP started on 12-feb-2015) 60000 78188.74 30.31% 10.51%

2. UTI Mastershare Unit Scheme - Growth: An offering from the UTI Mutual fund house, this is a large cap fund that has a total asset under management (AUM) of Rs. 6530 crore. NAV of the fund as on February 12 is Rs. 132.44. Both one-time investment in the scheme as well as SIP in the fund can be started for just Rs. 100.

 

Some of the big names in the fund's portfolio include ICICI Bank, Infosys, HDFC Bank, TCS, Axis Bank, L&T among others.

So, considering you start SIP in the fund, over the few years, your returns would be as given:

On monthly SIP of Rs. 1000 Total Investment Latest value Absolute returns Annualised returns
1 year (SIP started on 12-feb-2019) 12000 13133.93 9.45% 17.81%
3 year (SIP started on 12-feb-2017) 36000 41667.73 15.74% 9.7%
5 year (SIP started on 12-feb-2015) 60000 77297.26 28.83 % 10.05 %

3. IDFC Core Equity Fund- Growth: This fund is categorized within the large and mid cap fund space and commands a fund size of Rs. 2779 crore. NAV of the fund as on February 12 is Rs. 47.68. Crisil has in the previous quarter rated the fund as 2-star.

For one time investment, you need to park at least Rs. 5000, while through the SIP route a minimum of Rs. 100 needs to be invested. Top stock holdings of the fund include ICICI Bank, HDFC Bank, SBI, RIL, L&T, Indian Hotels, MRF Ltd. etc.

On monthly SIP of Rs. 1000 Total Investment Latest value Absolute returns Annualised returns
1 year (SIP started on 11-feb-2019) 12000 13042.75 8.69 % 16.35 %
3 year (SIP started on 11-feb-2017) 36000 39471.06 9.64 % 6.05 %
5 year (SIP started on 11-feb-2015) 60000 75371.69 25.62 % 9.04 %

4. ICICI Prudential US Bluechip Equity Fund: The fund over the last few years has performed very well and primarily invests in shares of foreign entities. Investors with deep insight on macro trends and preferring selective bets other than regular equity funds for higher returns can opt for the scheme with a minimum SIP amount of Rs. 100. As one-time investment you need to put in Rs. 5000 as minimum amount. Remember, your investment horizon in this international equity fund must be a minimum of 5 years.

As on February 11, 2020, growth plan of the scheme has an NAV of Rs. 33.05 and for the dividend option also it is the same at Rs. 33.05.

If you were to invest Rs. 1000 via SIP for a period of 5 years in this fund, your returns would be as though:

On monthly SIP of Rs. 1000 Total Investment Latest value Absolute returns Annualised returns
1 year (SIP started on 11-feb-2019) 12000 13954.45 16.29% 31.24%
3 year (SIP started on 11-feb-2017) 36000 48418.27 34.5% 20.17%
5 year (SIP started on 11-feb-2015) 60000 91872.16 53.12% 17.04%

5. ICICI Prudential Nifty Next 50 Index Fund - Growth: It is one of the index fund by ICICI Prudential AMC and commands a fund size of Rs. 618 crore. NAV of the fund for the growth plan is Rs. 25.53 as on February 12, 2020. Since its launch in 2010, the scheme has provided 10.21% return and tracks NIFTY Next 50 TRI as its benchmark.

If you were to invest Rs. 1 lakh in the fund for over 5 year, you would have built a corpus amount of Rs. 1.49 lakh. Primarily, investment of the fund is in large cap stocks and little over 16% in mid-cap stocks. Some of the top holdings of the fund are SBI Life Insurance, HDFC Life Insurance, Dabur, Godrej Consumer , Pidilite, Avenue Supermarts etc.

On monthly SIP of Rs. 1000 Total Investment Latest value Absolute returns Annualised returns
1 year (SIP started on 11-feb-2019) 12000 12738.2 6.15% 11.5 %
3 year (SIP started on 10-feb-2017) 36000 37618.99 4.5%
5 year (SIP started on 11-feb-2015) 60000 72452.27 20.75 % 7.46 %

Data has been sourced from Moneycontrol as on February 13, 2020.

So, if you are a millennial and have just started with your career you can consider taking the SIP route in some of these funds suggested above. But do remember mutual funds carry market risk and returns offered in the last few years may or may not be replicated.

Disclaimer The article is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.

About the author: Roshni Agarwal has been covering personal finance and investment planning for close to 5 years. She has a degree in MBA, Finance and writes on Mutual Funds, Stock Markets and Currency markets.

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