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6 Small and Mid Cap Mutual Funds With Rs. 100 SIP Options
In summary
A Rs. 100 SIP can be a simple way to begin investing in equity mutual funds, but the minimum amount should not be the main basis for choosing a scheme. Small-cap and mid-cap funds invest predominantly in companies from different market-capitalisation segments and can experience significant price fluctuations.
- Small-cap companies are ranked 251st onwards by full market capitalisation.
- Mid-cap companies are ranked 101st to 250th.
- Eligible schemes can have a minimum SIP of Rs. 100.
- A Rs. 100 SIP does not make an equity fund low-risk.
- The SEBI Riskometer ranges from Low to Very High.
- The Bajaj Broking website offers 4,000+ mutual fund schemes.
The six schemes below are examples that have shown Rs. 100 SIP availability in recent fund data. Minimums and risk labels can change, so check the latest scheme information before investing.
What are small-cap and mid-cap mutual funds?
Small-cap and mid-cap mutual funds are equity mutual fund categories based on the size of the companies in which they invest. SEBI's classification uses full market capitalisation to determine whether a company is large-cap, mid-cap, or small-cap. AMFI publishes the applicable stock classification list periodically.
- Mid-cap companies: Ranked 101st to 250th by full market capitalisation.
- Small-cap companies: Ranked 251st onwards by full market capitalisation.
Small-cap funds invest predominantly in small-cap companies, while mid-cap funds invest predominantly in mid-cap companies. Both are equity-oriented categories, so their NAVs can rise or fall with market conditions.
The size classification does not guarantee a particular level of return. You should also consider the individual scheme's portfolio, investment strategy, Riskometer, costs, and your investment horizon.
How can you start an SIP with Rs. 100?
An SIP, or Systematic Investment Plan, lets you invest a fixed amount in a mutual fund at regular intervals. If a scheme permits a minimum SIP of Rs. 100, you can start with that amount.
Starting with Rs. 100 can be useful if you are new to investing or want to begin with a small commitment. However, Rs. 100 is a minimum, not a measure of how much you should invest. Your investment amount should depend on your financial goals, available surplus, and investment horizon.
With an SIP, you buy units at the applicable NAV on each investment date. When the NAV is lower, the same amount buys more units. When it is higher, it buys fewer units. This is commonly referred to as rupee-cost averaging, but it does not guarantee a profit or protect you from losses.
On the Bajaj Broking website, eligible mutual fund schemes can be accessed after completing the required KYC process.
Which small-cap mutual funds offer Rs. 100 SIP options?
The following are examples of small-cap schemes that have been listed with Rs. 100 SIP options. The minimum SIP, scheme features, and Riskometer can change, so check the latest scheme information before investing.
| Mutual fund | Minimum SIP (Rs.) | Category | Riskometer* |
|---|---|---|---|
| Nippon India Small Cap Fund | 100 | Small cap | Very High |
| SBI Small Cap Fund | 100 | Small cap | Very High |
| Tata Small Cap Fund | 100 | Small cap | Very High |
The Rs. 100 minimum SIP for Nippon India Small Cap Fund and Tata Small Cap Fund is also reflected in current fund data.
These schemes are examples, not a ranking. A minimum SIP of Rs. 100 does not make one scheme more suitable than another.
Before investing, compare the scheme's investment objective, portfolio, expense ratio, Riskometer, exit load, and other applicable costs.
Which mid-cap mutual funds offer Rs. 100 SIP options?
The following are examples of mid-cap schemes with Rs. 100 SIP options based on currently available fund information.
| Mutual fund | Minimum SIP (Rs.) | Category | Riskometer* |
|---|---|---|---|
| HDFC Mid Cap Fund | 100 | Mid cap | Very High |
| Kotak Emerging Equity Fund | 100 | Mid cap | Very High |
| Nippon India Growth Mid Cap Fund | 100 | Mid cap | Very High |
HDFC Mid Cap Fund and Nippon India Growth Mid Cap Fund currently show a Rs. 100 minimum SIP.
The original list included Motilal Oswal Midcap Fund, but current fund information shows a Rs. 500 minimum SIP, so it does not meet the Rs. 100 criterion and has been replaced.
*Riskometer levels are subject to change. Check the latest Riskometer for the individual scheme before investing. SEBI's six risk levels are Low, Low to Moderate, Moderate, Moderately High, High, and Very High.
How do small-cap and mid-cap funds differ?
Both categories invest in equities, but the companies they primarily target fall into different market-capitalisation ranges.
| Basis | Small-cap funds | Mid-cap funds |
|---|---|---|
| Company classification | 251st onwards | 101st to 250th |
| Investment focus | Small-cap companies | Mid-cap companies |
| Market risk | Can be significant | Can be significant |
| Short-term price movement | Can be substantial | Can be substantial |
| Suitable investment approach | Consider only if the risk fits your goals and horizon | Consider only if the risk fits your goals and horizon |
It is better to avoid assigning a fixed return potential or holding period to either category. The risk of an individual scheme depends on its portfolio and other factors, while your suitability depends on your own financial circumstances.
What risks should you consider before investing?
Small-cap and mid-cap funds are equity investments, so their values can fluctuate. A Rs. 100 SIP does not make the underlying investment less risky.
Consider these risks before investing:
- Market volatility: Your investment value can fall when equity markets decline.
- Business risk: Smaller and mid-sized companies can be affected by changes in demand, competition, costs, or economic conditions.
- Liquidity risk: Some smaller companies may have lower trading volumes, which can affect how easily securities can be bought or sold.
- Return uncertainty: Mutual fund returns are market-linked and are not guaranteed.
- Short-term fluctuations: Your investment can show a loss over a shorter period even when you have a longer investment horizon.
SEBI's Riskometer provides a standard way to understand the risk level of an individual mutual fund scheme. The current framework maps risk values across six levels, from Low to Very High.
How can you compare these funds before investing?
Do not select a fund only because its minimum SIP is Rs. 100. Use the minimum amount as one starting point, then review the scheme itself.
Check:
- Investment objective: Understand what the scheme aims to achieve and where it can invest.
- Portfolio: See the types of companies and sectors held by the scheme.
- Riskometer: Check the scheme's current risk level.
- Expense ratio: Understand the recurring expenses charged to the scheme.
- Exit load: Check whether a charge applies if you redeem within a specified period.
- Investment horizon: Consider whether you can stay invested through periods of market volatility.
- Your financial goal: Match the investment with what you are trying to achieve and when you need the money.
A practical example
Suppose Rohan is new to mutual funds and can set aside Rs. 100 each month. He finds a small-cap fund with a Rs. 100 minimum SIP and considers starting one.
Instead of choosing it only because he can afford the minimum amount, Rohan checks the fund's Riskometer, investment objective, portfolio, expense ratio, and exit load. He also considers whether he can remain invested through periods when the fund's value may fall.
This approach helps him understand the investment before committing money. The same process applies when comparing mid-cap funds.
The Bajaj Broking website can be used to compare eligible mutual fund schemes. You can start with an SIP or invest through lumpsum, subject to the applicable scheme requirements.
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Can I increase my Rs. 100 SIP later?
Yes, you may be able to increase your SIP amount later, subject to the scheme's rules and the investment platform's available options. Starting with Rs. 100 does not mean you must continue with that amount forever. If your income or available surplus increases, review your financial goals and decide whether a higher investment amount is appropriate.
Is a Rs. 100 SIP suitable for everyone?
No. Rs. 100 is a minimum investment amount for eligible schemes, not a recommended amount for every investor. The amount you invest should depend on your financial goals, time horizon, income, expenses, and risk tolerance. A small SIP can help you begin, but you should review whether the amount is sufficient for the goal you are working towards.
Are small-cap funds riskier than mid-cap funds?
Small-cap funds can experience significant volatility because they invest primarily in smaller companies. Mid-cap funds can also carry substantial market risk. You should not decide between the categories only by assuming that one will always have a particular risk level. Check the individual scheme's Riskometer and portfolio before investing.
Does a Rs. 100 SIP mean I can earn higher returns with a small amount?
No. The minimum SIP amount does not determine your returns. Mutual fund returns depend on the performance of the underlying investments and market conditions. A Rs. 100 SIP can help you start investing with a small amount, but returns are not guaranteed, and the value of your investment can fall.
Do small-cap and mid-cap funds have exit loads?
Some schemes may charge an exit load if you redeem units within a specified period. The amount and applicable period differ between schemes. Check the latest Scheme Information Document and other scheme-related documents before investing or redeeming your units.
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Disclaimer
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that the SIP calculator are for illustrations only and do not represent actual returns which may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.