How to Start a SIP in India with Just ₹500 – A Beginner’s Guide 2025
When you have had that intention to start making your investments but you do not think you are the kind of people who earn salaries that can invest, then you are wrong. With the help of the modern investment platforms and mutual funds, it does not take too much to begin your financial journey, as you can enter with 500 rupees a month.
Now, in this guide we will take you through step-by-step on how to open a SIP ( Systematic Investment Plan ) in India even without any prior knowledge.
What is SIP?
A Systematic Investment Plan (SIP) is a mode of investment that enables the individual to invest a specific amount of money on a regular basis (monthly/weekly) in the mutual fund of his choice. The idea is similar to a recurring deposit, only smarter, as your money increases in terms of market-linked returns.
Why should you open a 500 SIP?
Low barrier to entry shortage of requirement to put aside a huge sum of money
Instills an investment culture on Day 1
Compounding works with any quantity
Aids the attainment of long-term objectives (e.g. education, travel, retirement etc.)
How to start a SIP in India? 500- Rupees
Choose the Right Investment App Step 1
The introduction apps relate to the best apps that are SIP friendly in India as follows:
Features Best For Link
Groww User-friendly interface, a lot of fund choices. popular among beginners..
Kuvera 100 direct mutual funds Long term investors 🔗 Try Kuvera
INDmoney SIP track + goal track Net worth tracker 🔗 Download INDmoney
ET Money Auto SIP planning Smart budgeting
Step 2: Carry out KYC -Know Your Customer
All investment apps need simple documents:
PAN Card
Aadhaar (mobile linked)
Bank Account (to get SIP auto-debit)
Other apps such as Groww, or INDmoney can be used to perform e-KYC instantly with Aadhaar OTP.
Step 3: Choice of Mutual Fund
Begin with these categories suitable to heart patients:
✅ ELSS Funds (for tax Benefits under 80C section)
Big Cap Stock Index Funds (e.g. Nifty 50 or Sensex)
✅ Balanced/Fund/ Hybrid (Saupurv naksha hogaya growth along with safety)
Pro Tip: After searching on the apps, apply the filters to sort out mutual funds based on their risk value, returns, and minimum SIP amount.
Step 4:Automate SIP Auto-Debit Setup
In the majority of apps you can:
Fix a time of monthly SIP
Pick auto-debit at your bank
You can slice or put hold SIPs at any time
Case Study: Invest 500 rupees on 7 th of each month in Nippon India Nifty 50 Fund, direct growth.
How Much will 500 Rupees be worth?
Let’s assume:
₹500/month
12 percent, average annual return
More than a decade
Just 60,000 invested, and you will end up with 1.14 lakhs.
(It is magic!)
🧾 SIP Starter Checklist
🎁 Includes:
KYC steps
App shortlist
Types of funds to look at
Monthly investment watcher
SIPs in India Frequently Asked Questions
Q: Is there any possibility to discontinue my SIP?
It is true, the SIPs are flexible. You have the options to pause, add and cancel by using the app.
Q: is SIP safe?
SIPs are invested in mutual funds that are market linked. Nevertheless, they have a netting tendency of risks in the long run particularly in the diversified funds.
Q: What would happen in case I skip one SIP?
No penalty. You are free to start in a month, or restart later.
Final Word:
An investment of 500 in SIP is small, but it is one of the wisiest steps to create investments. When your earnings come up, augment your SIP, remain steadfast and see your wealth rise gradually.
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