How to Start Investing in a Nifty 100 Index Fund with Just ₹100

Ever wondered if you could invest even with your last ₹100 by the end of the month? Well, you absolutely can. Passive funds such as the Nifty 100 Index Fund make the stock market accessible, and many allow you to invest with ₹100 as a starting point. The Nifty 100 index is a “diversified investing basket” of India’s top 100 companies by market capitalization across varied sectors of the Indian economy. Investing in this index would mean owning a bit of everything,¬ from banks and tech firms to consumer brands.

Before you start, you should know that like any equity investment, there are Nifty 100 Index Fund risks such as market volatility, tracking error etc..

Now, let’s explore why starting small makes sense, how to begin investing in a Nifty 100 Index Fund, and some of the pitfalls to watch out for.

Why Start Small?

Thanks to the micro-SIP revolution, you don’t need a big bank account to invest. Axis Mutual Fund, that offers index funds at low-cost let investors put in as little as ₹100 per month. This low minimum investment removes the psychological barrier of having to save a large lump sum to start your journey. Essentially, it eliminates excuses we tend to make for not starting our investment journeys, like not having enough money to invest.

Starting small helps develop the discipline of investing regularly. For instance, by starting small via SIP investing (Systematic Investment Plans), you can invest a chosen amount from your bank account at your preferred intervals. Over time, these small contributions can potentially compound. This approach also leverages rupee cost averaging: here, you continue to buy units through market ups and downs, which not only reduces the emotional urge to time the market but also averages out your total cost.

Starting small can also ensure that you are able to sustain your habit of investing, rather than investing heavily in one month and not investing at all in the next.

Moreover, starting small is better than not starting at all and missing out growth opportunities. For instance, as of 30th Sep 2025, the Nifty 100 index has delivered an annualised return of 18.65% in last 5 years and 16.87% CAGR since inception (Inception date 1 December, 2005).(For scheme performance refer below performance table)

Steps to Start Investing

1. AMC or fund house websites: Asset management companies like Axis Mutual Fund allow you to directly invest via their websites or mobile apps in this case you don’t even required demat. Alternatively, you can open a demat and trading account with a broker. Keep your PAN and Aadhaar card handy for eKYC formalities.
2. Choose a fund: Choose a Nifty 100 Index Fund for example Axis Nifty 100 Index Fund. As these passive index funds aim to replicate the benchmark index, they don’t need extensive research. The investment is done in the same proportions as the index. This structure helps passive funds keep their expense ratios lower than active funds. Hence, remember to check the expense ratio and tracking error before you invest.
3. Set up a SIP: Decide how much you can invest regularly. Even though many index funds allow ₹100 monthly SIPs, you can choose an amount that you feel comfortable with. There is no maximum limit. Set up the SIP through your bank’s auto-debit or UPI.
4. Monitor your investments: Review the performance of your fund every quarter or so to ensure that the performance stays close to the index.

Tips for Small Investors

• Stay consistent: The power of compounding works best when you invest regularly. Even when markets dip, it makes sense to continue your SIP as it can buy more units for the same investment amount. Index investing isn’t a get rich quick scheme. Large cap indices like the Nifty 100 Index are designed for potential long-term returns.
• Avoid timing the market: Trying to buy at the “bottom” and sell at the “top” is nearly impossible because you can never know in advance what would be the market bottom and peak. Passive investing thrives on staying invested; the fund continues to mirror the index regardless of market noise. This can help you avoid any hasty decisions made with emotional and human biases.
• Index funds risk and return: These funds are not completely risk-free. The companies that constitute the Nifty 100 index are susceptible to changes in factors like economic downturns, geopolitical changes, or regulatory changes. However, a 5-7 year horizon helps smooth out market volatility and also help maximize long-term returns.

FAQs:

• Can I invest ₹100 in a Nifty 100 Index Fund?
There is no maximum amount to start investments as a beginner. With Axis Mutual Fund’s index schemes, you can start your investment journey with as little as ₹100.

• What is an SIP in mutual funds?
A SIP (Systematic Investment Plan) lets you invest a fixed about of sum at regular intervals in your choice of mutual fund schemes.

• How long should I invest for?
Equity index funds are risky and are suitable for those investors who can stay invested for 5+ years. To help smooth out market volatility, keep a long-term investment horizon and let compounding do the heavy lifting.

Conclusion

A small amount can be the first step towards building lasting wealth. To make the investing journey easier for you, Axis Nifty 100 Index Fund allows you to begin SIP investing with as little as ₹100, combining low costs with a broad exposure to India’s top 100 companies.

All you need to focus on is the consistency. Keep your SIP investing on, ignore the noise, and give compounding time to work its magic. Time in the market matters more than timing the market.

As on 30th September. . https://www.niftyindices.com/, Axis MF Internal Research.

NSE Disclaimer: The scheme is not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED. NSE Indices Limited does not make any representation or warranty, express or implied, to the owners of the scheme or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the underlying index to track general stock market performance in India. NSE INDICES LIMITED does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty 100 TRI . NSE INDICES LIMITED is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash.NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the underlying index or any data included therein and NSE INDICES LIMITED shall not have any responsibility or liability for any errors, omissions, or interruptions therein. For complete disclaimer, refer to the SID.

Disclaimer: This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable.

While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Past performance may or may not be sustained in the future.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.