No need for KYC in Micro SIP: This is a better option for small investors, even with a minimum investment of ₹100, a fund worth hundreds of thousands of dollars can be created.

Investing Rs 100 every month through Micro SIP can become Rs 23,000 in 10 years.

If you are planning to invest through mutual funds, but cannot deposit a large amount in one go, then “Micro SIP” (Micro-Systematic Investment Plan) may be a better option for you.

With this, you can create a fund worth thousands of dollars even with a minimum investment of Rs 100 per month. Most fund companies in the country offer plans to start investing with at least Rs 500 or Rs 1000. But some fund companies allow investment even with a minimum amount of Rs 100.

What is Micro-SIP?

Micro SIP is a way to invest in mutual funds. In this, the investor can start investing with a minimum monthly contribution of Rs 100. Fund companies are launching such investment options to attract small investors.

To make investing in mutual funds more affordable and easier, fund houses are gearing up to reduce the amount to be deposited every month to Rs 50. This method of investment reduces the average monthly investment of the investor .

Advantages of Micro SIP Mutual Fund:

Low SIP amount: The most important thing about Micro SIP is that the investment amount is low, starting from just Rs 100. This can be a better option for investors on a budget.Flexible investment: Micro SIPs are flexible. Investors can adjust it according to their needs or financial capacity. This makes the investment process smooth and easy.Simplified KYC: There is no need to do KYC for Micro SIP. Because the amount deposited in a financial year does not exceed Rs 50,000. This makes it easier for people to start investing in mutual funds.

Is long term SIP investment a profitable trade?

There are many varieties of mutual funds like equity, debt and hybrid funds etc. It is often found that investing in equity funds turns out to be more profitable in the long term. The reason is that doing SIP in equity funds for a long period reduces the risk of fluctuations in the stock market.

The stock market’s lows and highs create an average return and also benefit from compounding. But it’s not that there aren’t short-term mutual funds. Investors can also make SIPs in debt or hybrid funds keeping in mind their needs and investment period.

Is it better to invest money in SIP daily or monthly?

There is an option to invest daily, monthly or quarterly in mutual funds through SIP. Facts emerging from research in recent years show that in the long run, the number of SIPs performed in a month does not matter if the sum of SIPs performed throughout the month is the same.

Gold hits all-time high of ₹75,750 on Thursday: This week silver became more expensive by ₹1,657, today silver became more expensive by ₹1,792 and reached ₹92,522/kg.1:06copy link