Best Mutual Funds for SIP with ₹500
Best mutual funds to start SIP with just ₹500 per month in India. Top rated funds with minimum ₹500 SIP investment.
20
Top Funds
Top Ranked by 3-Year Returns
Nippon India Nifty Next 50 Junior BeES FoF - Direct Plan - Growth Plan - Growth Option
Nippon India Mutual Fund · Large Cap
Nippon India Nifty Next 50 Junior BeES FoF - Growth Plan - Growth Option
Nippon India Mutual Fund · Large Cap
UTI Nifty Next 50 Index Fund - Regular Plan - Growth Option
UTI Mutual Fund · Large Cap
Kotak Nifty Next 50 Index Fund - Direct Plan - Growth Option
Kotak Mahindra Mutual Fund · Large Cap
Navi Nifty Next 50 Index Fund- Regular Plan- Growth
Navi Mutual Fund · Large Cap
Navi Nifty Next 50 Index Fund- Direct Plan- Growth
Navi Mutual Fund · Large Cap
UTI Nifty Next 50 Index Fund - Direct Plan - Growth Option
ICICI Prudential Mutual Fund · Large Cap
Motilal Oswal Nifty Next 50 Index Fund - Regular plan - Growth
Motilal Oswal Mutual Fund · Large Cap
DSP Nifty 50 Index Fund - Direct Plan - IDCW
DSP Mutual Fund · Large Cap
DSP Nifty 50 Index Fund - Regular Plan - Growth
DSP Mutual Fund · Large Cap
DSP Nifty 50 Index Fund - Regular Plan - IDCW
DSP Mutual Fund · Large Cap
ICICI PRUDENTIAL ENERGY OPPORTUNITIES FUND - Direct Plan - IDCW
ICICI Prudential Mutual Fund · Large Cap
Edelweiss Nifty Next 50 Index Fund - Direct Plan - IDCW
Edelweiss Mutual Fund · Large Cap
NIPPON INDIA NIFTY NEXT 50 JUNIOR BEES FOF - DIRECT Plan - IDCW Option
Nippon India Mutual Fund · Large Cap
NIPPON INDIA NIFTY NEXT 50 JUNIOR BEES FOF - IDCW Option
Nippon India Mutual Fund · Large Cap
Kotak Nifty Next 50 Index Fund - Regular Plan - Growth Option
Kotak Mahindra Mutual Fund · Large Cap
Motilal Oswal Nifty Next 50 Index Fund - Direct plan - Growth
Motilal Oswal Mutual Fund · Large Cap
LIC MF Nifty Next 50 Index Fund-Direct Plan-Growth
LIC Mutual Fund · Large Cap
LIC MF Nifty Next 50 Index Fund-Direct Plan-IDCW
LIC Mutual Fund · Large Cap
SBI Nifty Next 50 Index Fund - Regular Plan - Income Distribution cum Capital Withdrawal Option (IDCW)
SBI Mutual Fund · Large Cap
How to Choose the Best Mutual Funds for SIP with ₹500?
A ₹500/month SIP is less about the amount and more about proving out the habit — at typical long-term equity returns, ₹500/month compounds into a meaningful sum only after a decade or more, so the real value of starting here is building the discipline of investing consistently before (ideally) increasing the amount as income grows. Many first-time investors use a small SIP specifically to get comfortable watching a fund's NAV move up and down before committing larger amounts.
Because the amount is small, fund selection matters less for the first year or two than simply starting and staying consistent — a step-up SIP feature, where the monthly amount automatically increases each year (often 10% annually), is worth pairing with a ₹500 starting SIP specifically because ₹500 held flat for 20 years leaves significant money on the table compared to the same SIP that grows with your income.
Frequently Asked Questions
How much should I invest per month?
There is no fixed rule. Start with an amount you can consistently invest every month without straining your budget. Even ₹500-₹1,000/month compounded over 10+ years can build significant wealth.
Should I invest in a SIP or lump sum?
SIP (Systematic Investment Plan) is recommended for most investors as it averages out the purchase cost over time (rupee cost averaging). Lump sum is suitable when markets are significantly undervalued or you have a large amount to invest.
How are returns taxed?
Equity fund LTCG (held > 1 year) above ₹1 lakh is taxed at 10%. STCG (held < 1 year) is 15%. For ELSS, gains after 3-year lock-in are LTCG. Debt fund gains are taxed per your income tax slab (post-2023).
What is CAGR?
CAGR stands for Compounded Annual Growth Rate — the rate at which your investment would have grown each year if it had grown at a steady rate. It is the standard way to compare mutual fund returns across different time periods.
Is ₹500/month enough to build real wealth over time?
On its own, ₹500/month held flat for decades compounds to a modest sum even at good equity returns — its real value is establishing the SIP habit early. Increasing the amount over time (a step-up SIP, or manually raising it as income grows) is what turns a ₹500 starting point into meaningful wealth.
Can I increase my SIP amount later without starting a new one?
Yes — most fund houses allow you to modify an existing SIP's amount, or set up a step-up (top-up) SIP in advance that automatically increases the monthly investment by a fixed percentage or amount each year without any manual action needed.
Related Pages
* Data is for informational purposes only. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Consult a SEBI-registered investment advisor.