What Is the Minimum SIP Amount?
The minimum SIP amount in India varies by fund, but most mutual funds allow SIPs starting from Rs 500 per month. Some funds have reduced this to Rs 100 per month to increase accessibility for all income levels. The minimum SIP amount is set by the AMC and is specified in the fund's Scheme Information Document (SID). SEBI mandates that mutual fund SIPs should be affordable and accessible to retail investors.
Minimum SIP Amounts by Category
| Fund Type | Typical Minimum SIP Amount |
|---|---|
| Most equity mutual funds | Rs 500 per month |
| Select funds (micro-SIP category) | Rs 100 per month |
| ELSS funds | Rs 500 per month |
| Index funds | Rs 100 to Rs 500 per month |
| Liquid funds | Rs 1,000 per month (typically) |
Is Rs 500 SIP Worth Starting?
Yes, absolutely. Rs 500 per month in an equity fund at 12% annual return for 20 years grows to approximately Rs 4.97 lakh. The principle is to start early, not wait until you have a "significant" amount to invest. Starting with Rs 500 builds the habit of regular investing, establishes KYC and account setup, and earns real returns while you gradually increase the amount.
Increasing SIP Over Time
Most platforms allow "step-up SIP" where the SIP amount automatically increases by a fixed amount or percentage each year. For example:
- Start: Rs 2,000 per month.
- Year 2: Rs 2,200 per month (10% increase).
- Year 5: Rs 2,928 per month.
Even a 10% annual step-up transforms the final corpus dramatically over 15-20 years compared to a fixed SIP amount.
Multiple SIPs in Multiple Funds
You can run multiple SIPs simultaneously in different funds. For example: Rs 2,000 per month in a large-cap index fund + Rs 2,000 per month in a mid-cap fund + Rs 1,000 per month in a debt fund = total SIP of Rs 5,000 per month across three funds. Each SIP has its own NACH mandate and runs independently.
Key Takeaway
The minimum SIP amount of Rs 500 (or even Rs 100 for some funds) makes mutual fund investing genuinely accessible to every Indian regardless of income level. The power of SIP comes from consistency and time, not from the size of the monthly contribution at the start. Use the Lemonn app to discover funds with low minimum SIP amounts and begin building your investment portfolio today.
