Myth: You Need ₹1 Lakh to Start Investing — The Truth Will Surprise You

Myth vs Fact • May 6, 2025 • 2 min read

Myth vs Fact
May 6, 2025 2 min read Myth vs Fact

One of the most common reasons people delay investing is the belief that you need a large sum of money to begin. This myth stops millions of Indians — especially young professionals and salaried workers — from starting their investment journey at the right time. Let us bust this myth with actual numbers.

The Myth

“I will start investing once I have saved ₹1 lakh.”

This sounds sensible but it is not. The problem is that “once I have ₹1 lakh” becomes “once I have ₹2 lakh,” and then life happens — an expense, a purchase, a need — and the money gets spent. The investment never happens.

The Fact: ₹500 is Enough to Start

Most mutual fund SIPs in India allow you to start with as little as ₹100–₹500 per month. There is no minimum lump-sum requirement to begin. You can start today, right now, from your phone in 15 minutes.

What ₹1,000/Month Can Become

Duration Total Invested Value at 12% Returns
10 years ₹1,20,000 ₹2,32,339
20 years ₹2,40,000 ₹9,89,255
30 years ₹3,60,000 ₹35,29,914

₹1,000 per month for 30 years becomes almost ₹35 lakhs. You invested only ₹3.6 lakhs. The rest — over ₹31 lakhs — is compounding doing its work.

The Real Cost of Waiting

If you wait 5 years to “have more money” before starting, and then invest the same ₹1,000/month for 25 years (instead of 30), your corpus drops from ₹35 lakhs to approximately ₹18 lakhs. Those 5 years of waiting cost you ₹17 lakhs.

The best time to start was yesterday. The second best time is today. Talk to us and we will help you start, even with ₹500.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. All investments are subject to market risks.

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