Do you think you need thousands of rupees to start investing? Think again. What if we told you that you could begin your journey to financial freedom with the price of a couple of samosas? That’s right, with just Rs. 100 in your pocket, you can take your first step into the world of investing.
For too long, the idea of investing has been surrounded by myths: that it’s only for the rich, that it’s as good as gambling, or that you need a finance degree to understand it. We’re here to bust those myths wide open. Starting your investing journey is about consistency, not capital. It’s about building a habit that pays you for the rest of your life.
In this simple guide, we’ll walk you through exactly how to start investing with Rs. 100, where to put your money, and how this tiny amount can snowball into a significant sum over time. Let’s begin!
Why Start Investing with Such a Small Amount?
You might wonder, “What can Rs. 100 really achieve?” The answer lies in two powerful financial concepts: Compound Interest and the Habit of Saving.
The Magic of Compound Interest
Often called the “Eighth Wonder of the World,” compound interest is the process where your earnings start earning their own earnings. Imagine a snowball rolling down a hill, gathering more snow and getting bigger and bigger.
· How it works with Rs. 100: Let’s say you invest Rs. 100 and it grows by 10% in a year. You now have Rs. 110. Next year, that 10% growth is on Rs. 110, giving you Rs. 121. It seems small, but over 20 or 30 years, this effect is explosive. Starting early, even with a small amount, gives this magic more time to work in your favour.
Building the Unbreakable Habit
The primary goal of starting with Rs. 100 isn’t to get rich overnight. It’s to build the habit of investing. By making a small, regular investment, you train your brain to prioritize your future self. It removes the fear and inertia, making you a disciplined investor for life. Once the habit is set, you can always increase the amount as your income grows.
Where Can You Actually Invest Rs. 100 in India?
Gone are the days when you needed a fat wallet to enter the market. Thanks to technology and new financial products, your options are plenty.
1. Mutual Funds via SIP
This is, without a doubt, the best and most accessible way to start investing for beginners.
· What is a SIP? A Systematic Investment Plan (SIP) allows you to invest a fixed amount (like Rs. 100) in a mutual fund at regular intervals (monthly, weekly). It’s like a recurring deposit, but for market-linked investments.
· Why it’s perfect for you:
· Affordability: Many Asset Management Companies (AMCs) now allow SIPs starting from just Rs. 100 per month.
· Rupee Cost Averaging: This is a superpower for beginners. When you invest a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high. This averages out your purchase cost and reduces risk.
· Diversification: Your Rs. 100 is pooled with money from other investors and spread across dozens of companies, making it safer than betting on a single stock.
How to start a Rs. 100 SIP:
1. Choose a user-friendly investment app like Groww, Coin by Zerodha, or Kuvera.
2. Complete your KYC (you’ll need your PAN and Aadhaar card).
3. Search for mutual funds that allow a “SIP of Rs. 100”.
4. Select a fund (we’ll discuss how to choose next) and set up your auto-debit.
2. Digital Gold
You can now buy 24-karat digital gold online for as little as Rs. 1. Platforms like PhonePe, Google Pay, or specialized apps like SafeGold and Augmont allow you to purchase, sell, and even take physical delivery of gold.
· Pros: Easy, secure, and a good hedge against inflation.
· Cons: Unlike mutual funds, gold doesn not generate “earnings” or dividends; its value purely depends on market price.
3. Direct Stocks
While it’s harder to find a quality stock for exactly Rs. 100, some brokers offer fractional investing or “SIP in Stocks,” where you can buy a small part of a share. However, this is riskier than a mutual fund SIP because your money depends on the performance of just one company. We recommend starting with mutual funds to build a foundation first.
Your Simple 5-Step Plan to Start Investing Today
Follow this actionable plan to go from zero to investor in under an hour.
Step 1: Define Your Goal
Are you investing for a new phone, a vacation, or long-term wealth creation? Having a clear goal will keep you motivated. For Rs. 100, think of it as a “learning goal” to understand the market.
Step 2: Choose the Right Platform
Download a SEBI-registered investment app. Groww and Coin by Zerodha are excellent for beginners due to their simple interfaces and educational content.
Step 3: Pick Your First Mutual Fund
For a beginner starting with a small amount, an Index Fund is a fantastic choice.
· What is it? It’s a fund that simply copies a market index like the Nifty 50 or Sensex. Its performance mirrors the overall Indian economy.
· Why it’s great: It’s low-cost, diversified, and you don’t need to worry about picking winning stocks. The fund does the work for you. Search for “Nifty 50 Index Fund” on your app.
Step 4: Set Up Your SIP
Once you’ve selected the fund, click “Invest,” choose the SIP option, and set the amount to Rs. 100. Select a date for the auto-debit (e.g., the 5th of every month, right after your salary comes in).
Step 5: Stay Consistent and Patient
The most important step. Don’t stop your SIP when the market goes down. In fact, that’s when rupee cost averaging works best. Set it and forget it. Let the magic of compounding do its work.
Common Myths Busted for the Beginner Investor
· Myth 1: “I need to be an expert.”
· Truth: With tools like Index Funds, you don’t need to be a expert. You’re simply betting on the long-term growth of the country.
· Myth 2: “Investing is just like gambling.”
· Truth: Gambling is based on chance. Investing is based on a disciplined process and the historical growth of economies and companies. It’s a marathon, not a lottery ticket.
· Myth 3: “I need to watch the market every day.”
· Truth: For a long-term SIP investor, daily market noise is irrelevant. In fact, checking too often can lead to panic-driven mistakes.
The Future of Your Rs. 100 Investment
Let’s do some simple math. Suppose you start a monthly SIP of Rs. 100 in a fund that gives an average annual return of 12% (a reasonable long-term expectation for equity in India).
· In 10 years, your total investment of Rs. 12,000 could grow to approximately Rs. 23,000.
· In 20 years, your Rs. 24,000 investment could become about Rs. 99,000.
· In 30 years, your Rs. 36,000 could potentially grow to a staggering Rs. 3.2 Lakhs!
This is the real power of starting small but starting early.
Your Journey Begins Now
You have the knowledge, you have the tools, and you now know that the biggest barrier to investing isn’t money—it’s starting. That Rs. 100 note in your wallet is more powerful than you ever imagined. It’s a seed that, when planted with discipline and patience, can grow into a mighty tree of financial security.
Don’t wait for the “right time” or a “larger amount.” The best time to start investing was yesterday. The second-best time is today. Open that app, pick your fund, and start your Rs. 100 SIP.