Best Mutual Funds for SIP Under ₹500 in India – 2025
Investing in mutual funds through SIP (Systematic Investment Plan) is a great way to build wealth over time. If you are just starting your investment journey and looking to invest under ₹500, there are several mutual funds that offer solid returns even with low monthly contributions. Here are the best mutual funds for SIP under ₹500 in India for 2025, perfect for beginner investors who want to start with a small budget.
1. Axis Bluechip Fund
The Axis Bluechip Fund is one of the most popular equity mutual funds in India, known for its stable returns and consistent growth. It primarily invests in large-cap stocks, making it a safe option for long-term investors. You can start investing in this fund with as little as ₹500 through SIP.
- Category: Large Cap Fund
- 5-Year Return: 12.5% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Conservative investors looking for large-cap exposure
2. Mirae Asset Emerging Bluechip Fund
The Mirae Asset Emerging Bluechip Fund is an excellent option for those looking for high returns with moderate risk. It invests in mid-cap and large-cap stocks and is ideal for investors with a higher risk tolerance. The SIP investment starts at ₹500, making it an accessible option for many investors.
- Category: Large and Mid-Cap Fund
- 5-Year Return: 14% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Growth-oriented investors
3. HDFC Small Cap Fund
If you are looking for higher returns with a slightly higher risk, the HDFC Small Cap Fund is a good choice. It primarily invests in small-cap stocks, which have the potential for significant growth. With an investment starting as low as ₹500, this fund is ideal for young investors with a long-term horizon.
- Category: Small Cap Fund
- 5-Year Return: 16.8% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Risk-tolerant investors seeking high growth
4. ICICI Prudential Technology Fund
The ICICI Prudential Technology Fund focuses on investing in the fast-growing technology sector. If you believe in the potential of technology companies, this fund provides an excellent opportunity to gain exposure to the sector. The SIP amount starts from ₹500, making it accessible for small investors.
- Category: Sector Fund (Technology)
- 5-Year Return: 18.6% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Investors looking to invest in the tech sector
5. Franklin India Low Duration Fund
For conservative investors who prefer low-risk options, the Franklin India Low Duration Fund is an excellent choice. This fund focuses on short-term debt instruments, making it less volatile than equity funds. With a minimum SIP of ₹500, it’s a great option for those new to investing or those seeking stability.
- Category: Debt Fund
- 5-Year Return: 7.5% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Conservative investors looking for stable returns
6. Aditya Birla Sun Life Digital India Fund
The Aditya Birla Sun Life Digital India Fund invests primarily in companies from the digital and technology space. If you are excited about India’s growing digital economy, this fund can be a good choice. The SIP starts at ₹500, and it’s suitable for investors interested in a sector that is expected to grow exponentially in the coming years.
- Category: Sector Fund (Digital)
- 5-Year Return: 20.3% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Growth-oriented investors seeking exposure to the digital economy
7. Tata Ethical Fund
The Tata Ethical Fund is for investors who are interested in ethical and socially responsible investing. It focuses on companies that align with environmental, social, and governance (ESG) standards. The minimum SIP is ₹500, and it provides an opportunity for investors to support responsible businesses.
- Category: Equity Fund (ESG)
- 5-Year Return: 11.2% (approx.)
- Minimum SIP Amount: ₹500
- Best For: Investors interested in ethical investing
Why Choose SIP for Investment?
SIP is a disciplined way of investing where you contribute a fixed amount of money regularly to a mutual fund. The main advantages of SIP include:
- Rupee Cost Averaging: Reduces the risk of market volatility by spreading your investment over time.
- Compounding: Small investments can grow over time, leading to substantial wealth accumulation.
- Flexibility: You can start investing with as little as ₹500 and increase the amount over time.
Conclusion
Investing in mutual funds through SIP is one of the most effective ways to build wealth, even if you have a small budget. The funds mentioned above offer a great starting point for investors with an SIP amount of ₹500. Remember to review your investment strategy periodically to ensure it aligns with your long-term financial goals.
Disclaimer: Past performance is not indicative of future results. Please consult a financial advisor before making investment decisions.