How to Start SIP with a Small Salary in 2026?

Summary: 

• Even a modest salary can support an SIP if you first plan your budget using the 50-30-20 rule. 

• When starting SIP in a mutual fund scheme, know your risk tolerance limit and investor type. 

• To know your “investor category”, you may perform a free financial health check on the airpay money app.  

• Debt, hybrid, or equity funds can be selected based on whether you are a conservative, balanced, or aggressive investor. 

• Lastly, open a trading + Demat account and set up the auto-debit facility (NACH mandate).  

• Several SIP plans for beginners can be explored and applied directly on the airpay money app.  

Most people begin with ₹500 and a little fear!  

Starting an SIP (Systematic Investment Plan) is one of the most preferred investment routes in mutual funds.   

As per AMFI, the total amount collected through SIPs in February 2026 stood at ₹29,845 crore. Also, about 65.72 lakhs of new SIPs were registered during this period, taking the total “contributing SIP A/Cs” to 944.48 lakh. 

Are you also looking to start SIP in 2026? 

Worried you have a modest salary and couldn’t accumulate much? 

Understand that SIPs are designed for “consistency” and not large investments. They offer the advantage of compounding, where your investments earn “return on returns” due to re-investment of profits. 

Read this article to learn how you can calculate the “right” SIP amount and how you can start SIP even with a small salary.  

What is the “Right” SIP Amount? 

You may start by preparing a budget following the 50-30-20 rule, which divides your monthly income into three categories: 

• 50% goes towards “needs” 

• 30% goes towards “wants”, and 

• 20% goes towards “savings” 

Now, the last bucket (20% of your monthly income) is what can be invested in SIP plans for beginners.   

Don’t want to make manual calculations?  

You can use the airpay money budget calculator. It is based on the 50-30-20 budgeting rule and automatically breaks down your income into needs, wants, and savings categories. All you have to do is just enter your monthly income.  

How to Start SIP With a Modest Salary or Low Monthly Savings in 2026? The 3-Step Process 

Now, once you have an idea of the starting SIP amount you can comfortably invest each month, the next step is to choose a scheme that suits your risk appetite and financial goals. 

Always remember that the “right scheme” is not about chasing returns! 

Instead, it is about selecting investments you can stay committed to during both market ups and downs. 

Below are some steps you can follow: 

Step 1: Understand Your Risk Profile First 

Before starting SIP in any mutual fund, you must be aware of your risk tolerance limit. To know it, you can take a free financial health check available on the airpay money app. This assessment can be completed in under 10 minutes, and the financial report so generated provides: 

• Your financial health score 

• Your “investor type”, such as conservative, balanced, or aggressive 

• Areas for improvement 

Step 2: Choose a Scheme Based on Your Investor Type 

Once you know your investor category, you can choose mutual fund schemes that suit your risk appetite. Let’s see how: 

Step 3: Open a Trading + Demat Account and Start Your SIP 

To start SIP in mutual funds, you need to open both a trading account and a Demat (Dematerialised) account with a registered broker. 

• A trading account allows you to place investment transactions, such as buying or redeeming mutual fund units. and 

• A Demat account holds your investments in electronic form. 

Once your accounts are set up, you can start an SIP of ₹500 per month or any other amount, in your preferred mutual fund scheme. Usually, this is done by setting up an “NACH mandate”.  It enables monthly SIP auto-debits from your bank account (no manual intervention is required every time). 

SIP Plans for Beginners Available on airpay money 

Investments in mutual funds can be made directly on the airpay money mobile application. Here, you can explore hundreds of mutual fund schemes grouped under different themes, such as: 

• Better than FDs 

• High returns 

• Bluechip Fund 

• Long-term Investments 

• Tax Saving Fund 

• Emergency Fund, and more. 

For your reference, below is a list of some SIP plans for beginners available on the airpay money app that you may consider (sorted based on returns from highest to lowest): 

Conclusion 

So now you know that even an SIP of ₹500 per month can let you accumulate a sizeable corpus, provided you remain disciplined + invest consistently. However, to gain the most, you must first assess your risk appetite and understand your investor category.  

Once this is done, the next step is to choose the right mutual fund scheme aligned with your investing type and financial goals. Several SIP plans for beginners can be explored and applied directly on the airpay money app. We are a 360-degree financial wellness platform trusted by 1,00,000+ users.

Download the app today and check out multiple options offered by India’s leading fund houses, such as Quant, HDFC, SBI, ICICI Prudential, and more.