A Micro SIP (Systematic Investment Plan) allows investors to start investing in mutual funds with a very small amount—just Rs 50 or Rs 100 per month. This makes it an excellent choice for small investors such as students, daily wage earners, and gig workers who want to build wealth gradually without straining their budgets.

What Is a Micro SIP?

A Micro SIP is a simplified version of the traditional SIP. While a standard SIP usually requires a minimum monthly investment of Rs 500, a micro SIP reduces this to just Rs 100. Investors can contribute in small amounts—daily, weekly, or monthly—making it easier to develop consistent savings and investment habits.

For example:

• • Investing Rs 10 per day equals Rs 300 per month.

• • Investing Rs 50 per day equals Rs 1,500 per month.

These smaller, manageable payments allow individuals to start their investment journey early and enjoy the benefits of compounding over time.

How Much Can You Earn with Micro SIP Investments?

Let’s look at how investing Rs 10, Rs 20, or Rs 50 per day through a micro SIP can grow over five years at an assumed annual return of 12% per annum.

Scenario 1: Rs 10 Per Day SIP

• • Investment: Rs 10 daily = Rs 300 monthly

• • Total investment over 5 years: Rs 18,250

• • Expected corpus: Rs 25,008.87

• • Total returns: Rs 6,758.87

Scenario 2: Rs 20 Per Day SIP

• • Investment: Rs 20 daily = Rs 600 monthly

• • Total investment over 5 years: Rs 36,500

• • Expected corpus: Rs 50,017.74

• • Total returns: Rs 13,517.74

Scenario 3: Rs 50 Per Day SIP

• • Investment: Rs 50 daily = Rs 1,500 monthly

• • Total investment over 5 years: Rs 91,250

• • Expected corpus: Rs 1,25,044.34

• • Total returns: Rs 33,794.34

Why Consider a Micro SIP?

While a micro SIP won’t make you a millionaire overnight, it’s a practical and affordable way to start investing in mutual funds. Even an investment as small as Rs 10 per day can grow into a meaningful corpus over time. More importantly, it encourages the habit of disciplined and early investing, which is key to long-term wealth creation.

Disclaimer: This article is based on information originally published by NDTV . All rights and credits for the original reporting belong to NDTV and the respective author. The content here has been adapted for informational purposes.