Is It worth to invest 100 in SIP?

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100 Rupees is way too little to invest or to do anything. A cup of coffee at a decent restaurant costs more than 100. How can you expect to gain something with just 100 rupees?

Hold on a second! Let me make something very clear. This is not what I believe. This is what most of us think when it comes to investing smaller amounts like 100 or 500 rupees.

Technically investing 100 rupees somewhere would not create huge wealth. But, investing it every month in SIP is certainly worth it.

Let me take an example to see what benefit an investor would get in terms of money by investing rupees 100 monthly.

An investor Ramesh starts a SIP of rupees 100 from the age of 20. He continues his SIP for 30 years, investing 100 rupees every month. Ramesh would invest a total of 36,100 rupees in 30 years. Can you guess what would be his actual wealth after 30 years?

Assuming the rate of interest of 15% over such a long run he would accumulate 5,28,315. Yes! a whopping net profit of about 4,92,215 rupees. Enough for your world tour. isn’t it?

What can you do with 100?

For most of the millennials especially in India, Mutual Funds and Stock Market are not very preferred places of Investment. Most of them have a perception it is very risky. Also, the chances of getting their money to vanish in the market are very high.

From my experience, I can be sure about one thing nobody loses their money in Mutual Funds. Don’t count the exceptions. Remember one thing, it is a bit risky but you are always good to go.

You 100 rupees would bring a lot of benefits to your investment journey. Some of them are

  • It will create a small amount of wealth
  • Build up the habit of Monthly Investments
  • You will get exposure to Mutual Funds Market

100 rupees to a small amount of wealth

Your small amount of wealth could be in lakhs. Consider the above example in which Ramesh earns a profit of more than 4.9 Lakhs, by just investing around 36 thousand. This is the magic of SIP. Even after investing such a negligible amount of money, You become lakhpati!

Build up the habit of Monthly Investments

This is the most important benefit that you get from your 100 rupees of SIP. To become a successful investor, it is very important and practical to build a habit of investing on regular basis. When you start early, even if in smaller amounts you can maximize the chances of getting profits from the market.

You will get exposure of Mutual Funds Market

Trying out anything new is the most difficult task. Things become even more difficult when it is related to money. Investors generally have 100’s of questions about investing in Mutual funds.

Mutual funds are very risky, You can not withdraw your money easily, It is difficult to track your investments in Mutual funds, It is difficult to manage, etc, etc, etc. You will find answers to all your questions once you start your SIP with any amount.

Don’t go for free advice from your friends or family members. Rather experiment with your 100 rupees and you will see all your doubts will end within 3-4 months of investments.

How to plan my Investments with 100 Rupees?

If you are a first-time investor and wish to do things on your own. Do a little research and get to know about a few common terms like

Debt Funds, Equity Funds, Hybrid Funds, NAV, Expense ratio, Exit Load, Fund Ratings, etc and you are good to go.

I also recommend to go for a financial planner to start your investments. He understand the market in a much better way and you can rely on his experince to gain profits.

Building a crore with a SIP of 100

Yes! it is possible. Your SIP of 100 could bring you a lot of fortune. All you need to do is follow the rules of investments.

Start your investment with 100 rupees. Get to know about the market, know the basics, build a habit to invest. Once you are comfortable and familiar with the market. Gradually increase your monthly SIP amount.

With increased investments, power of compounding and decent rate of interest you can surely build your crore without much hassle.

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