List of the Best SIP Plans for ₹500 Per Month in India 2026
A Systematic Investment Plan, or SIP, allows investors to invest a fixed amount in a mutual fund scheme at regular intervals, typically monthly. There are many mutual funds that have set ₹500 as the minimum SIP amount, making it one of the most accessible ways to participate in equity and other markets without requiring a large upfront commitment.
Below is a list of mutual funds that accept SIPs starting from ₹500 per month or lower, sorted by 5Y CAGR. The article also covers what SIP means, how it works, key benefits, risks, and factors to consider before investing.
Best SIP Plans for ₹500 Per Month
Here is a list of mutual funds with a minimum SIP of ₹500 per month or lower, based on 5Y CAGR.
| Name | AUM (in Cr.) | NAV | CAGR 5Y (%) | CAGR 3Y (%) | Expense Ratio (%) | Exit Load (%) | Volatility (%) |
|---|---|---|---|---|---|---|---|
| HDFC Gold ETF FoF | 11,457.67 | 50.54 | 27.94 | 40.73 | 0.18 | 1 | 29.06 |
| ICICI Pru Gold ETF FOF | 6,338.49 | 51.62 | 27.91 | 40.82 | 0.09 | 1 | 28.55 |
| Kotak Gold Fund | 6,556.25 | 65.08 | 27.62 | 40.63 | 0.16 | 1 | 28.05 |
| Invesco India PSU Equity Fund | 1,491.71 | 78.92 | 25.29 | 31.39 | 0.9 | 1 | 17.08 |
| DSP India T.I.G.E.R Fund | 5,184.00 | 346.26 | 23.85 | 26.22 | 0.75 | 1 | 13.68 |
| LIC MF Infra Fund | 946.24 | 55.71 | 23.35 | 28.81 | 1 | 1 | 17.56 |
| ICICI Pru Commodities Fund | 3,559.92 | 49.15 | 23.2 | 20.49 | 1 | 1 | 16.95 |
| HDFC Infrastructure Fund | 2,366.20 | 50.43 | 22.89 | 25.93 | 1.16 | 1 | 13.11 |
| Bandhan Small Cap Fund | 19,266.54 | 47.16 | 22.51 | 29.33 | 0.48 | 1 | 15.76 |
| Nippon India Power & Infra Fund | 6,772.68 | 367.41 | 22.34 | 25.56 | 0.96 | 1 | 15.18 |
Disclaimer: The above list of monthly best sip plans for ₹500 per month is for educational purposes only and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from the Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data in the list above is from 3rd March 2026 and is derived from the Tickertape Mutual Fund Screener.
- Plan: Growth
- Minimum SIP ≤ ₹500
- 5Y CAGR: Sorted from highest to lowest
Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
What is a SIP 500 Per Month?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds that allows investors to invest a fixed amount at regular intervals, such as weekly, monthly, or quarterly, into a chosen scheme. Instead of making a lump sum investment at one time, SIPs divide the investment into smaller, periodic contributions. Many mutual fund houses set ₹500 as the minimum SIP amount, making it a commonly available entry point for starting a SIP.
Overview of Best SIP Plans for ₹500 Per Month
HDFC Gold ETF FoF
HDFC Gold ETF FoF is a Fund of Funds that invests in units of HDFC Gold ETF, which in turn holds physical gold. The fund provides exposure to domestic gold prices without requiring investors to hold physical gold. Returns are linked to the performance of gold as an asset class.
ICICI Pru Gold ETF FoF
ICICI Pru Gold ETF FoF is a Fund of Funds that allocates its corpus to units of ICICI Prudential Gold ETF. The underlying ETF holds physical gold in dematerialised form. The fund’s performance is directly linked to domestic gold price movements.
Kotak Gold Fund
Kotak Gold Fund is a Fund of Funds that invests in units of Kotak Gold ETF. The ETF holds physical gold as the underlying asset. The fund allows investors to gain exposure to gold price movements through the mutual fund route without holding gold directly.
Invesco India PSU Equity Fund
Invesco India PSU Equity Fund is a thematic equity fund that invests in public sector undertakings (PSUs) listed on Indian stock exchanges. The portfolio includes companies across sectors such as banking, energy, defence, infrastructure, and industrial manufacturing that are government-owned or controlled. The fund aims to participate in growth linked to PSU performance and policy-driven capital expenditure.
DSP India T.I.G.E.R Fund
DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund) invests in companies linked to infrastructure growth and economic reforms. The fund spreads its investments across sectors such as capital goods, energy, industrials, and construction. It follows a thematic approach focused on India’s infrastructure expansion.
LIC MF Infra Fund
LIC MF Infrastructure Fund invests in equity and equity-related securities of companies involved in infrastructure activities. The portfolio includes businesses in power, roads, transportation, cement, and capital goods. The fund focuses on capturing growth from infrastructure spending in India.
ICICI Pru Commodities Fund
ICICI Pru Commodities Fund is a thematic equity fund that invests in companies involved in commodity-linked businesses. The portfolio includes companies across sectors such as metals and mining, energy, chemicals, and agriculture-linked industries. The fund aims to participate in earnings growth tied to commodity cycles and related industrial activity.
HDFC Infrastructure Fund
HDFC Infrastructure Fund is a sectoral equity fund that invests mainly in companies connected to infrastructure development. It includes exposure to engineering, construction, power, logistics, and materials companies. The fund aims to benefit from long-term infrastructure growth trends in India.
Bandhan Small Cap Fund
Bandhan Small Cap Fund is an open-ended equity scheme that invests predominantly in small-cap companies , defined as companies ranked 251st and beyond in terms of full market capitalisation. The fund aims to generate long-term capital appreciation by investing in businesses across this segment.
Nippon India Power & Infra Fund
Nippon India Power & Infra Fund is a sectoral equity fund focused on the energy and infrastructure sectors. The portfolio includes companies in power generation, transmission, distribution, construction, and allied industries. The fund seeks to capture growth driven by India’s expanding energy requirements and infrastructure investment cycle.
Taxation on SIP Investments
The tax treatment of SIP investments depends on the type of fund and how long each instalment is held. In a SIP, each monthly instalment is treated as a separate investment for tax purposes, with its own holding period counted from the date of that instalment. Below is a snapshot of taxation based on fund type and holding period.
| Mutual Fund Type | Short-Term Capital Gains (STCG) Holding Period | STCG Tax Rate | Long-Term Capital Gains (LTCG) Holding Period | LTCG Tax Rate | Indexation Benefit |
| Equity Mutual Funds | Less than 12 months | 20% | More than 12 months | 12.5% (Gains up to ₹1.25 lakh tax-free) | Not available |
| Debt Mutual Funds | Less than 36 months | Taxed as per the income tax slab | More than 36 months | 12.50% | Not available |
| Gold Mutual Funds | Less than 24 months | Taxed as per the income tax slab | More than 24 months | 12.50% | Not available |
How to Invest in SIP for ₹500 Per Month?
You can start a ₹500 SIP by following these steps:
- Visit an investment platform such as smallcase to access a range of mutual fund schemes.
- Research and identify funds that align with your investment objective. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on category, 5Y CAGR, expense ratio, and AUM.
- Once you shortlist a fund, log in to the platform, search for the fund by name, select the SIP option, enter ₹500 (or the applicable minimum), choose your preferred SIP date, and complete the setup.
- After setup, the SIP amount is auto-debited from your linked bank account on the chosen date each month, and units are allotted at the applicable NAV.
Who Can Consider Investing in SIP Plans for ₹500 Per Month?
- Investors Starting With a Small Budget: A ₹500 monthly SIP allows individuals beginning their investment journey with a limited budget to participate in mutual funds without committing a large upfront sum.
- Investors Looking to Build a Regular Investment Habit: SIPs automate the investment process through monthly auto-debit, which can help maintain consistency without requiring active decision-making each month.
- Investors Exploring Specific Themes or Sectors: Several funds in this list cover thematic and sectoral mandates such as gold, infrastructure, PSU companies, power, and small-cap stocks. Investors who want targeted exposure to these segments through a regular monthly contribution may find these options relevant to evaluate.
Benefits of SIP Plans for ₹500 Per Month
- Low Entry Barrier: A minimum SIP of ₹500 per month makes mutual fund investing accessible to a wide range of individuals, including those starting out or working with a modest monthly surplus. It reduces the need for a large initial corpus to begin investing.
- Rupee Cost Averaging: Because SIPs invest a fixed amount at regular intervals, investors automatically accumulate more units when NAVs are lower and fewer when NAVs are higher. Over time, this can result in a lower average cost per unit than a one-time lump-sum investment.
- Automated and Convenient: Once a SIP is set up, monthly deductions happen automatically from the linked bank account. This removes the need for manual action each month and helps maintain investment discipline with minimal effort.
- Flexibility: SIPs can generally be paused, modified, or stopped as per the investor’s financial situation, subject to the scheme’s terms. Investors can also increase the SIP amount over time as their income grows. Most open-ended schemes allow redemption at any time, subject to applicable exit loads.
- Access to Professional Fund Management: SIP investments in mutual funds are managed by professional fund managers who allocate the corpus in line with the fund’s stated mandate. Investors gain access to a managed portfolio of securities without needing to make individual stock selection decisions.
Risks of SIP Plans for ₹500 Per Month
- Market Risk: SIP investments in equity mutual funds are subject to market risk. The value of the portfolio can decline during periods of market correction or broader economic slowdowns. Rupee cost averaging helps manage the timing of purchases over different market levels, but it does not eliminate the possibility of negative returns.
- Sector and Concentration Risk: Several funds in this list are thematic or sectoral schemes covering gold, infrastructure, PSU equity, energy, and commodities. These funds invest within a specific segment of the market. If that segment underperforms due to policy changes, commodity price movements, or economic conditions, the fund may experience sharper drawdowns compared to diversified equity funds.
- No Guarantee of Returns: SIPs do not guarantee returns. Performance depends on the underlying fund’s portfolio, which is subject to market conditions and fund management decisions. Past performance of a fund does not indicate future results.
Factors to Consider Before Investing in SIP Plans for ₹500 Per Month
- Fund Category and Investment Mandate: The funds in this list span multiple categories, gold FoFs, thematic equity, sectoral equity, and small-cap. Each category carries a different risk profile and return expectation. Reviewing the fund’s mandate helps assess whether it aligns with the intended investment objective.
- Expense Ratio: The expense ratio is the annual fee charged by the fund house for managing the portfolio. A lower expense ratio means more of the fund’s gross returns flow through to the investor. Comparing expense ratios across funds in the same category is a useful step in evaluation.
- Performance Consistency: The 5Y CAGR indicates how the fund has performed over a five-year period. It is also useful to review how consistently the fund has delivered across different market conditions, including both up and down cycles, rather than focusing on a single performance metric.
- Investment Horizon: SIPs tend to be more effective over longer time horizons. The recommended holding period varies by fund category; equity-oriented and sectoral funds typically require longer time commitments than short-duration debt funds. Understanding this before starting a SIP helps set realistic expectations.
- Role in the Overall Portfolio: Thematic, sectoral, and small-cap funds carry concentrated exposure to specific segments. Investors should assess how a ₹500 SIP in a specific fund fits alongside their broader portfolio allocation. Maintaining exposure across multiple fund categories helps balance overall portfolio risk.
Conclusion
SIP plans starting at ₹500 per month provide an accessible entry point across a range of mutual fund categories, including gold, infrastructure, PSU equity, commodities, and small cap. The periodic, automated nature of SIP contributions supports disciplined investing and allows investors to benefit from rupee cost averaging across different market conditions over time.
Before starting a SIP, review the fund category, investment mandate, expense ratio, AUM, and performance consistency. For detailed fund analysis and comparison, use the Tickertape Mutual Fund Screener, which provides 50+ filters to evaluate funds across returns, risk metrics, and portfolio composition.
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Frequently Asked Questions on Best SIP Plans for 500 Per Month
SEBI has set ₹500 as the standard minimum SIP amount for most mutual fund schemes in India. Some fund houses offer lower entry points of ₹100 to make investing accessible to more investors, while certain schemes may require ₹1,000 or more. The minimum SIP amount for each scheme is mentioned in the scheme’s offer document.
Yes, most mutual fund schemes in India accept SIPs starting from ₹500 per month. Some schemes accept even lower amounts starting from ₹100. The applicable minimum varies by fund house and scheme. Investors can check the scheme information document or the investment platform for the applicable minimum before starting.
Disclaimer: The above information is for educational purposes only and is not recommendatory. Please do your own research or consult your financial advisor before investing.
SIP investments are not risk-free. Equity mutual funds are subject to market risk, and the value of the portfolio can fall during market downturns. SIPs help manage timing risk through rupee cost averaging, but they do not eliminate the possibility of negative returns. The level of risk depends on the type of fund chosen.
Disclaimer: The above information is for educational purposes only and is not recommendatory.
Most mutual fund schemes allow investors to pause or stop a SIP. Pausing is typically allowed for a defined period, after which the SIP resumes. Stopping a SIP cancels future instalments but does not automatically redeem accumulated units. Redemption of units is a separate process and may be subject to exit loads depending on the holding period of each instalment.
Investors can evaluate SIP plans based on fund category, investment mandate, 5Y CAGR, expense ratio, AUM, and performance consistency. The Tickertape Mutual Fund Screener provides filters to compare funds across these parameters. Consulting a financial advisor before making investment decisions is also advisable.Disclaimer: The above information is for educational purposes only and is not recommendatory.
As of 5th March 2026, some mutual funds that have delivered notable 5-year CAGR performance include:
– HDFC Gold ETF FoF
– ICICI Prudential Gold ETF FoF
– Kotak Gold Fund
– Invesco India PSU Equity Fund
– DSP India T.I.G.E.R Fund
Disclaimer: The above list of SIP 500 per month is for educational purposes only and is not recommendatory. Investors should conduct their own research or consult a financial advisor before making investment decisions
A ₹500 monthly SIP allows individuals to start investing with a relatively small amount at regular intervals. It enables disciplined investing and spreads investments over time rather than committing a lump sum at once.
Mutual fund investments are subject to market risks, and returns may vary depending on market movements and the performance of underlying securities. A smaller SIP amount may also take longer to accumulate a significant corpus.
To invest in mutual funds with a ₹500 Monthly SIP
– Visit smallcase that provides access to multiple mutual fund schemes.
– Research and compare funds using tools like the Tickertape Mutual Fund Screener, which allows filtering based on AUM, expense ratio, NAV, and other parameters.
– Shortlist a fund that matches your investment thesis, and start a ₹500 SIP
The return on a ₹500 SIP per month for 5 years depends on factors such as the mutual fund’s performance, market conditions, expense ratio, and overall economic environment. Since returns are market-linked, the final value can vary. However, the total invested amount over this period would be ₹30,000, excluding any gains generated by the fund.
The return on a ₹500 SIP for 10 years depends on the performance of the selected mutual fund and market movements during the investment period. Because mutual fund returns are not fixed, the final value may vary. The total amount invested over 10 years would be ₹60,000 (₹500 × 120 months), excluding potential returns.
The return on a ₹500 SIP per month for 20 years depends on various factors, including the fund’s portfolio performance, market trends, and economic conditions over time. Since returns are not guaranteed, the final corpus can differ.
