- Minimum Investment Required for Mutual Funds
- Minimum Investment by Fund Category
- The Power of Starting Small: The ₹100 SIP
- SIP funds starting with ₹100
- Why Do Funds Have Minimum Requirements?
- Factors to Consider Before You Start
- How to Start Investing via INDmoney?
- Conclusion
The minimum investment amount is the smallest sum of money required to purchase units of a mutual fund scheme.
Every mutual fund and scheme has its own minimum requirement, which is set by the respective Asset Management Company (AMC). This amount can vary depending on the type of fund, the investment mode (SIP or lump sum), and the fund house’s policies.
On Indmoney, you can start your investment journey with as little as ₹100. This low entry barrier allows students, young professionals, and small savers to build wealth over time.
Minimum Investment Required for Mutual Funds
The minimum amount varies depending on the specific fund house (AMC) and the method of investment you choose. There are two primary ways to invest:
- SIP (Systematic Investment Plan): You invest a fixed amount regularly (daily, weekly, monthly or quarterly). Minimums usually start at ₹100 or ₹500.
- Lump Sum (One-time): You can invest a one-time amount in a mutual fund as well. Some schemes allow you to start with just ₹100, while others may require a minimum of ₹500, ₹1,000 or ₹5,000, depending on the fund.
Minimum Investment in New Fund Offers (NFOs)
An NFO is like an "IPO" for the mutual fund world. It is the period when a fund house launches a new scheme for the first time.
- Lump Sum during NFO: Most fund houses set a minimum lump sum requirement of ₹5,000 during the NFO period.
- SIP during NFO: Even during a new launch, many funds allow you to start an SIP with just ₹100 or ₹500.
- Unit Price: During an NFO, the units are almost always priced at a fixed face value of ₹10 per unit.
Minimum Investment by Fund Category
While every fund has its own rules, here is the typical minimum investment structure across different categories:
| Fund Category | Typical Min. SIP | Typical Min. Lump Sum | Features |
| Equity Funds | ₹100 - ₹500 | Mostly ₹500 – ₹1,000 (varies by scheme) | Long-term wealth creation |
| Debt Funds | ₹100 – ₹500 (varies by scheme) | Mostly ₹500 - ₹1,000 | Short-term stability |
| Hybrid Funds | ₹100 - ₹500 | Mostly ₹500 - ₹1,000 | Balanced risk and return |
| ELSS (Tax Saving) | ₹500 | ₹1,000 | Tax-saving under Section 80C (with 3-year lock-in) |
| NFO (New Launch) | ₹100 - ₹500 | ₹5,000 | Entry at ₹10 Face Value |
Note: Some "Micro SIP" schemes now allow investments as low as ₹10 to ₹50, though ₹100 remains the industry standard for most popular funds.
The Power of Starting Small: The ₹100 SIP
Many investors wait until they have a "large amount" to start, but the Power of Compounding rewards those who start early, even with small amounts.
If you invest just ₹100 every month at an assumed annual return of 12%, here is how your money could grow:
| Investment Period | Total Invested | Potential Wealth (at 12%) |
| 5 Years | ₹6,000 | ~₹8,100 |
| 10 Years | ₹12,000 | ~₹23,000 |
| 20 Years | ₹24,000 | ~₹99,000 |
| 30 Years | ₹36,000 | ~₹3,50,000 |
Even a ₹100 habit can grow into a significant corpus over 30 years due to compounding.
SIP funds starting with ₹100
| Mutual Funds Scheme | Category | AUM (in ₹ crores) | 1Y Return | 3Y Return | 5Y Return |
| HDFC Balanced Advantage Fund | Hybrid fund - Balanced Advantage | 106,821 | 13.10% | 18.83% | 17.61% |
| HDFC Flexi Cap Fund | Equity fund - Flexi Cap Fund | 97,451 | 18.21% | 23.14% | 20.96% |
| ICICI Prudential Multi Asset Fund | Hybrid fund - Multi Asset Allocation | 80,768 | 18.19% | 20.63% | 20.43% |
| Nippon India Small Cap Fund | Equity fund - Small Cap Fund | 65,812 | 15.13% | 22.14% | 24.62% |
| Kotak Midcap Fund | Equity fund - Mid Cap Fund | 59,041 | 23.07% | 23.17% | 20.98% |
Why Do Funds Have Minimum Requirements?
- Operational Efficiency: It is costly for fund houses to manage thousands of very tiny transactions (e.g., ₹1 or ₹5). Setting a minimum helps cover administrative and management costs.
- Serious Investing: It encourages investors to commit to a disciplined savings habit.
- AUM Growth: Minimums ensure the fund reaches a certain size (Assets Under Management) to execute its investment strategy effectively.
Factors to Consider Before You Start
- Expense Ratio: Even if the minimum is low, check the expense ratio. High fees on small investments can eat into your returns.
- Investment Goal: If you are saving for a house, a ₹100 SIP won't be enough. Use the minimum to start, but aim to increase your investment as your income grows.
- Exit Load: Ensure you won't need the money immediately, as withdrawing early might trigger an exit load penalty.
How to Start Investing via INDmoney?
- Download & Sign Up: Get the INDmoney app and complete your paperless KYC.
- Filter by Minimums: Use the search filter to find funds that allow ₹100 SIPs.
- Automate Your SIP: Link your bank account and set up an "Auto-pay" so your minimum investment is deducted automatically every month.
- Zero Commissions: Invest in Direct Plans to ensure 100% of your money goes toward your wealth, with no hidden distributor fees.
Conclusion
The "Minimum Investment Amount" is proof that you don't need to be rich to start investing; you just need to be disciplined. Whether it is ₹100 or ₹10,000, the most important step is to start as early as possible. By utilising SIPs, you can leverage rupee cost averaging and compounding to turn small monthly savings into a substantial financial cushion.