If you’re earning a modest salary, here’s how you can start investing in India with just ₹500 per month. No jargon. No stress. Just simple steps that work.
✅ Step 1: Set a Monthly Auto-SIP for ₹500
Use apps like Groww, Zerodha Coin, or Paytm Money to set up a Systematic Investment Plan (SIP).
Choose a beginner-friendly mutual fund like:
- Parag Parikh Flexi Cap (long-term, diversified)
- Nippon India Small Cap (higher growth, higher risk)
- Axis Bluechip Fund (stable and balanced)
Even ₹500/month can grow to over ₹1 lakh in 10 years (at 12% average return).
✅ Step 2: Open a Free Demat Account
You’ll need this to invest in mutual funds or stocks. Choose platforms like:
- Groww – User-friendly for beginners
- Zerodha – Ideal if you want to try stocks later
- INDmoney – Tracks your SIPs, EPF, FD in one place
✅ Step 3: Track & Reinvest Your Earnings
After 6 months, increase SIP to ₹750 or ₹1,000 if your salary allows. Reinvest any returns back into your SIP. That’s how compounding works.
✅ Step 4: Don’t Panic with Market Fluctuations
Markets go up and down — that’s normal. You’re investing for the long term. Stick to your ₹500/month plan and don’t withdraw unless it’s urgent.
🧠 Bonus Tip: Use Auto-Debit to Stay Consistent
Set your SIP to auto-debit on salary day. Out of sight = out of spend = long-term wealth.
📈 How Much Can ₹500 Actually Grow?
Let’s assume you invest ₹500 every month for 10 years. At an average 12% return (typical for equity mutual funds), your investment grows like this:
| Time Period | Invested | Grows To |
|---|---|---|
| 1 year | ₹6,000 | ₹6,383 |
| 5 years | ₹30,000 | ₹40,191 |
| 10 years | ₹60,000 | ₹1,00,868 |
📌 Tip: Use a SIP calculator from Groww or ETMoney to visualize your future value.
💬 Frequently Asked Questions (FAQ)
❓ Can I pause or stop my ₹500 SIP?
Yes. SIPs are flexible. You can pause, stop, or modify them anytime using your investment app.
❓ Is ₹500 enough to start investing?
Absolutely. It’s not about how much — it’s about building the habit. ₹500 today is better than ₹0 tomorrow.
❓ Will I lose money in mutual funds?
Short-term dips are common, but SIPs are designed for long-term growth. Historically, equity SIPs have outperformed most fixed instruments over 5–10 years.
📥 Bonus: Free ₹500 SIP Tracker
Track your investment progress with our free Google Sheet SIP tracker:
- ✅ Monthly input + visual growth chart
- ✅ Auto-calculates 12% projected return
- ✅ Perfect for beginners tracking growth
📥 Click here to download the tracker (coming soon)
🎯 Final Thoughts
Starting small is better than not starting at all. Even with ₹500/month, you’re building discipline, financial awareness, and wealth over time.
Want more tips like this? Subscribe to RupeeSavers and explore our top picks for SIPs under ₹1,000.
