SIP ₹100: Top 5 Low-Cost Small-Cap Mutual Funds to Start Your SIP

Small-cap mutual funds invest at least 65% of their total assets in equity and equity-related securities of small-cap companies. These companies typically ranked outside the top 250 by market capitalisation. However, the exact classification may vary across different financial institutions.

For investors looking to start a Systematic Investment Plan (SIP) with a small amount, there are select small-cap mutual funds that allow an SIP with a minimum of ₹100. Additionally, these funds have some of the lowest expense ratios, which can help investors retain more of their potential returns.

Top 5 Small-Cap Mutual Funds with ₹100 Minimum SIP

Below is a list of 5 small-cap mutual funds that allow a minimum SIP of ₹100 while having a relatively low expense ratio. Note data as of March 10, 2025. 

1. Tata Small Cap Fund

• Assets Under Management (AUM): ₹8,883.39 crore
• Expense Ratio: 0.37%
• 3-Year Returns: 23.02%
• Minimum SIP: ₹100

2. Edelweiss Small Cap Fund

• AUM: ₹4,170.69 crore
• Expense Ratio: 0.43%
• 3-Year Returns: 18.68%
• Minimum SIP: ₹100

3. Bandhan Small Cap Fund

• AUM: ₹8,474.84 crore
• Expense Ratio: 0.46%
• 3-Year Returns: 26.47%
• Minimum SIP: ₹100

4. Kotak Small Cap Fund

• AUM: ₹16,450.27 crore
• Expense Ratio: 0.58%
• 3-Year Returns: 14.57%
• Minimum SIP: ₹100

5. Axis Small Cap Fund

• AUM: ₹20,954.45 crore
• Expense Ratio: 0.58%
• 3-Year Returns: 17.48%
• Minimum SIP: ₹100

Conclusion

Starting an SIP in a small-cap mutual fund with just ₹100 is possible, and the funds listed above offer this option with some of the lowest expense ratios in the category. While expense ratio plays a role in cost efficiency, it is also important to assess a fund’s overall performance and investment strategy before making any decisions.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.