Right investment in mutual funds with a little money

Yes. You can do SIP Rs.2000/- every month. There are many MFs that are good. I give below some of the good SIP investment schemes.
Axis Bluechip Fund
Mirae Asset Large Cap Fund
Parag Parikh Long Term Equity Fund
Kotak Standard Multicap Fund
Axis Midcap Fund
DSP Midcap Fund
Axis Small Cap Fund
SBI Small Cap Fund
SBI Equity Hybrid Fund
Mirae Asset Hybrid Equity Fund

Before deciding on the scheme go through the details of the scheme by referring to their websites and then decide.

Can I start a SIP with this low investment?
You can start SIP for Rs200/-. Theoretically, you can start with even Rs100/ a month.

However once started it is a commitment for the period chosen. So you have to ensure that you will be able to spare smoothly the committed SIP amount. So first decide on that.
As MF s have some charge, actual investment will be les than the SIP amount. Hence it may need sufficient long periods for the investment to grow,generally. Though your question is regarding SIP,inter alia I may suggest that (if not done already)you keep some funds in bank FD/RD so that you can get that money in case of urgent need.
As you are planning for your retirement provision, you can invest in equity funds.
Later on when you can spare more amount you may invest in further funds like balanced funds etc

But do a little homework as select those from reputed an established fund houses and those funds with some consistent growth/return history. Also compare charges of different MFs.

As far as I know, you can start with a minimum investment of Rs 500 every month to invest in mutual funds. As you detailed that you are able to save at least 200 rupees every month then SIP is a good option for you. Your profit in this amount will also be somewhat satisfactory. At the same time, investing in this amount reduces the risk associated with market volatility. Investing in Mutual Funds is not a big deal but it is important to have regularity in it, many times people do invest but delay the process from time to a certain date every month. It is said by financial advisors that if we want to get a regular and balanced wealth, then we should invest the saved amount through SIP. You can get a large amount by investing a small amount at fixed intervals continuously for a long period of time. In this, you also have another advantage in the future that according to your convenience, if you want to continue investing, then it is fine, but if you want, you can also close it according to your own.

Before investing in MF we have to understand some basic points about it. All the MF schemes invest their collected money from the investors in market where they buy shares of the companies, bonds of the Govt as well as companies, other money instruments etc and by judiciously investing in the best yielding options they earn money for the investors and after deducting their expenses which are a small percentage of their corpus (less than 3%) they will pass on the benefits to the investors. Now in an increasing market this could give good return to the investor but in the falling market the investor will get losses also. So, from that perspective MF investment is also risky like the direct market investment.
The MF companies have come up with different schemes having different risk profiles and offer the same to the investors. There are basically three types of schemes. First is equity oriented scheme where the fund invests mainly in the shares of companies. This is a high risk area but returns are also much if things go as per the expectations. Second is the balanced funds where a part (generally 60-70%) is invested in equity and rest in binds or debt instruments. This has lesser risk than the first category and returns also might be less. The third is pure debt funds where only bonds and fixed interest instruments are bought by the funds and the risk is least but the return is also likewise.
As for an ordinary investor it is very difficult to time the market and it is equally difficult to decide as when to buy and when to exit so MF funds have come up with a SIP plan in which even a little amount invested every month can slowly become a good investment over a long horizon and the investor has an option of exiting anytime depending on the market.
One important thing to understand about the MF investment is that the net asset value (NAV) of MF scheme units goes up and goes down depending upon the market and if the market condition is good then it would normally increase. So, the units which one buys at lower NAV values will be more in numbers then what one buys at higher NAV. So, though the market is increasing but the investor will be getting lower number of units at good times and more numbers in bad times. This is one aspect which is seen by the shrewd investors not to go for SIP and invest in the MF scheme when its NAV is low. Anyway that is not for an ordinary investor who have to rely only on SIP mechanism for building up a sizeable kitty in future.
You can definitely start depositing some little amount every month in some of the good schemes of reputed fund houses like HDFC MF, SBI MF, ICICI MF etc. Past performance of the fund is also to be seen so that we can expect same performance in future though the past performance is not a guarantee for future returns.
In SIP mode the fluctuations of markets are well covered for the investor and he need not to mug up to find the suitable time for investment. Further, SIP is a disciplined approach to investment. I would prefer to invest in balanced funds as they are well balanced from the return and risk aspects. The risk taking investors can select the equity oriented funds also. Before making a decision please go through some financial MF sites where the relative strength of many schemes is shown for the guidance of the investors.
Once you select a scheme then please see the income tax implications also as they vary from different schemes. Anyway, the taxes on MF, except a few categories, are not on a higher side and that might not make much difference. You can do some homework and if you require more information or clarifications after that then please feel free to ask them here or may be in a separate thread.

There are many MFs available in the market. You go through the internet where different types of MF and its detail are there. You can start any of them at your convenience. You can start your investment in mutual fund from 500/-. Per month. HDFC MF and SBI MF are best for investment. Some SIP can be started with 2000/- per month also. Here I am giving details of SIP which are as follows:-
1. Axis Midcap Fund
2. DSP Midcap Fund
3. Axis Small Cap Fund
4. SBI Small Cap Fund
5. SBI Equity Hybrid Fund
6. Mirae Asset Hybrid Equity Fund
7. Axis Bluechip Fund
8. Mirae Asset Large Cap Fund
Before investing in this scheme you must take details regarding this. If you go to offices you will find many people who have invested money in different MFs. They will give details the profit and risk of MF.

SIP can be initiated for purchasing mutual funds portfolios for as little as Rs 100/- per month to encourage low paid employees , students communities and others who cannot afford more money in such schemes on the regular basis. You need to consider the following points so as to gain handsome profits from the mutual fund market.
1) Before starting your SIP for Rs 200/- for the mutual fund, you have to make a market research ensuring how such funds which you would like to undertake has shown their results in the past five years, their trend of profitability, paying out their dividends of each year for such mutual funds.
2) If you cannot devote much time to the activities of the mutual fund, download the app of DBS giving you enough opportunities to tracking of the performance of such accounts.
3) Choose the funds carefully. Even the advice of the financial consultants would be helpful to achieve a better profit.
4) Whatever amount you choose for the SIP, it must be credited to the SIP fund on the fixed date and hence you have to advise your bank to debit the SIP amount on regular time.
5) There may be market fluctuations affecting your values of your returns and even this may go below beyond your expectations and hence stay invested for a long time horizon.

If you are investing in mutual funds, make sure that you have paid a partial transaction cost. Every year the Securities and Exchange Board of India (Sebi) provides some discounts. It also charges a transaction cost on withdrawals. Hence, it is a good idea to regularly check the transaction cost.

Create a spending and savings account.

Try to create a spend and save account. You will be surprised to see that you are saving more with an account. Since it is your money, you can feel free to choose how much you want to spend on leisure and other things. However, always create a separate savings account where you can keep the small amount that you have saved. Saving small amounts regularly is a sure way of gaining financial independence.

Your home, your health, and your money are your most important possessions. Buy home insurance, so that if anything happens to your home, it will not affect you financially. Pay yourself first.

Before buying anything, check your finances. If you do not have enough money to buy anything, that does not mean that you should not buy anything at all. Always remember that you are what you spend. If you don't have enough money, don't buy anything else. If you do have enough money, but find that you do not have enough time, you should allocate time for money, instead of the other way round.

Don't try to buy low-risk funds in retirement.

Many people try to save as much money as possible for retirement. However, this can be quite challenging when you do not have enough savings, to begin with. It is better to try to buy mutual funds that are relatively safe and gradually withdraw money from them.

Select mutual fund schemes according to your financial goals.

Investing in mutual funds is very beneficial for you if you have well-defined financial goals and achieve them. It is best to invest in funds that are suited to your financial goals. You may buy a balanced fund that has equity and debt funds. You can go for an equity fund that has global exposure. The options are endless. You can decide what best suits your need.

A word of caution:

Never invest in debt funds. They are the riskiest ones and carry the highest cost. Choose equity funds on which you can gain a higher return.

When investing in mutual funds, you should know how much you should invest and not allow yourself to forget about the amount and lose sight of the goal. Use life-cycle funds, which can help you save more.

Plan your monthly expenses carefully.

The best way to save money is to know your income and expenses well. If you know where your money goes, it will help you in spending more wisely and save more. But be careful when you are not able to keep a track of expenses. This is when you need to invest in a professional money manager.

Don't invest your money in any money market mutual fund.

The problem with money market mutual funds is that the interest that you earn is hardly anything. In fact, this is the least profitable investment you can make. You can make more money by investing in gold or by investing in real estate.

Be true to yourself and don't get swayed by misleading advertisements.

A deceptive advertisement is a simple way to cheat people. Be honest and don't sell yourself short. This is the best way to help yourself. You will have to be realistic when it comes to managing your money. Spend only what you earn and save the rest. Invest in mutual funds only when you are confident that you can make it big.

Start saving as soon as you can.

Saving money is not a piece of cake. But if you want to be financially independent, you need to start saving as soon as you can. If you start investing in a bank account when you are in college, you have started saving. But, you must know that investing in mutual funds takes time and patience. There is nothing wrong with buying cheap products. That is one way of acquiring wealth.