After the era of COVID, almost all Indian citizens have started saving their money. Those who have good knowledge of the stock market, invest their money in shares, but some people like me, who do not have much knowledge of the stock market, invest their savings in mutual fund companies.
Best mutual funds to invest Rs 1000 every month: In mutual funds, we can invest in two ways. First One-Time, and second by putting all our savings together, those who cannot accumulate a lump sum amount can invest through SIP, which stands for Systematic Investment Plan. In SIP, one can invest a certain amount every month. If you invest even 1000 per month in an SIP plan, you can generate excellent returns within 5, 10, 15, or 20 years. This means you can multiply your money by the time.
Therefore, today we are going to discuss through this article which is the best SIP plan for 1000 per month in mutual funds in our country, India, and in which category of mutual funds we should invest 1000 rupees per month according to our convenience.
What is the best SIP Plan?
Mutual funds, regulated by the government institution SEBI (Securities and Exchange Board of India), offer investment opportunities beyond the stock market. These funds are managed by renowned institutions, and any citizen can invest their money through methods such as Systematic Investment Plan (SIP) and lump sum investments. SIP is a medium through which an investor puts a certain amount of money into a mutual fund regularly, typically monthly, on a chosen date according to their convenience. The invested funds are then managed by experienced fund managers who allocate them in the stock market, aiming to generate favorable compounded returns for the investors. This strategy is referred to as the Best SIP Plan.
Best SIP Plan for 1000 per Month – Top 5 Mutual Funds
I have mentioned here the SIP (Systematic Investment Plan) plan of the best mutual funds, where you can invest Rs 1000 per month and potentially multiply your money several times in just a few years.
1. Tata Small Cap Fund Direct-Growth
Investing 1000 rupees per month through SIP in Tata Small Cap Fund could be a good option. This is a small-cap fund, which means it holds shares of those companies that are relatively new and hence have a higher chance of uncertainty. However, if these companies move into the mid or large-cap category, your investment could multiply significantly, offering substantial returns. It’s important to note that while the potential for impressive returns exists, the risk is also considerably high.
- If we look at it, this mutual fund has provided an annual return of 27.74% to its investors so far, and it is very well-managed. Therefore, I give it a 5-star rating.
- The total value of this fund is 6,236 crores rupees.
- This fund has invested 94.4% of the money in equity and kept the remaining 5.6% in cash; it has not invested in debt to date.
- This Tata Small Cap Fund is one of the best SIP plans for 1,000 per month. You can choose to invest in it.
- However, keep in mind that this is a high-risk fund, so the returns may be very low or even equivalent to no returns at all.
- Therefore, invest only the money that either you can afford to lose or that will provide excellent returns.
Read also: What is an Equity Fund? Advantages, Disadvantages, Types, Return
2. Quant Small Cap Fund Direct Plan-Growth
Investing 1000 rupees per month through SIP in a small-cap fund could be a good option. This fund primarily consists of shares of companies that are relatively new, increasing the chance of higher returns but also carrying a higher risk of potential losses. If these companies eventually grow to mid or large-cap status, your investment could multiply significantly. In other words, there is a potential for excellent returns in this fund. However, it’s important to note that the risk is considerably high.
- If we look at it, this mutual fund has given its investors an annual return of 19.90% so far, but there have been several instances of a decline in this fund as well.
- The total value of this fund is 17,348 crore rupees.
- This fund has invested 95.7% of the money in equity, 1.5% in debt, and the remaining 2.8% is kept in cash.
- This small-cap fund is one of the best SIP plans for Rs. 1000 monthly. You can choose to invest in it.
- However, keep in mind that this is a high-risk fund, so there is a possibility that the return may be very low, or you may not get any return at all.
- Therefore, invest only the money that you can afford to either lose or that will give you a very good return.
Read also: What is Hybrid Fund? Types, Benefits, Return, How to Work and Invest
3. Nippon India Large Cap Fund Direct-Growth
Investing ₹1000 per month through SIP (Systematic Investment Plan) in Nippon India Large Cap Fund is a very good option. This is a large-cap mutual fund where shares of companies that are quite old and significant in the Indian economy are held more. This fund focuses on companies that play a crucial role in India’s economy. In this fund, you can easily achieve a return of 10% to 15%, and the risk is also quite low.
- If we look at it, this mutual fund has given its investors an annual return of 17.18% so far. However, there was a slight dip in this fund during the COVID era in 2020, but it is now reaching new heights again.
- The total value of this fund is 24,378 crores rupees.
- This fund has invested 96.3% of the money in equities and 2.4% in debt and kept the remaining 1.3% in cash.
- This Nippon India Large Cap Fund is one of the best SIP plans for 1000 rupees per month. You can choose to invest in it.
- This fund is a very good mutual fund, and investing in it will make your money grow through compounding returns.
Read also: Top 10 Best Performing Mutual Funds in India 2024
4. Parag Parikh Flexi Cap Fund Direct-Growth
Investing 1000 rupees per month through SIP in Parag Parikh Flexi Cap Fund is a very good option. It is a flexi cap fund, meaning the fund manager can independently invest in shares of any company in any quantity. This flexibility allows for the possibility of significant returns if the invested companies grow. However, there is also a risk of potential losses if the companies perform poorly. In essence, while there is a high potential for excellent returns, there is also a high level of risk associated with this fund.
- If we look at it, this mutual fund has provided an annual return of 20.59% to its investors so far. However, there have been several instances of a downturn in this fund, but it has quickly risen to new highs again.
- The total value of this fund is ₹60,559 crores.
- This fund has invested 85.5% of the money in equities and 13.7% in debt, with the remaining 0.8% kept in cash.
- It is a flexi-cap fund and is one of the optimal SIP plans for ₹1,000 per month. You can choose to invest in it if you wish.
- However, please note that this is a high-risk fund, so there is a possibility that the returns may be very low, or you may not get returns at all.
Read also: What is Public Provident Fund (PPF) and More Details
5. Motilal Oswal Midcap Fund Direct-Growth
Investing 1000 rupees per month through SIP in Motilal Oswal Mid Cap Fund can be a good option. This is a mid-cap fund, meaning it primarily holds shares of companies that fall in the medium-sized category. So, the downfall that any company can face is lower for these companies. However, if these companies move into the large-cap category, your investment could multiply several times. In other words, you have the potential for excellent returns in this fund.
- Looking at it overall, this mutual fund has provided an annual return of 24.74% to its investors so far, but there have been several instances of decline in this fund.
- The total value of this fund is 8,986 crore rupees.
- This fund has invested 93.5% of its money in equities and keeps the remaining 6.5% in cash.
- This Motilal Oswal Mid Cap Fund is one of the best SIP plans for 1,000 per month. You can choose to invest in it.
- However, keep in mind that this is a medium-risk fund, so you may receive returns in the medium range.
Compounding returns every year by investing Rs 1,000 per month in Mutual Fund
I have attempted to explain here through an example that if we invest a thousand rupees per month in a mutual fund and receive an annual return of only 16%, then in just 4 years, our return becomes more than the amount invested because we receive compounding returns every year.
| Years | Annual Return | SIP Per Month | Total Invest Amount | Total Amount | Total Return |
| 1. | 16% | 1,000 | 12,000 | 13,093 | 1,093 |
| 2. | 16% | 1,000 | 24,000 | 28,441 | 4,441 |
| 3. | 16% | 1,000 | 36,000 | 46,433 | 10,433 |
| 4. | 16% | 1,000 | 48,000 | 67,524 | 19,524 |
| 5. | 16% | 1,000 | 60,000 | 92,249 | 32,249 |
| 6. | 16% | 1,000 | 72,000 | 1,21,234 | 49,234 |
| 7. | 16% | 1,000 | 84,000 | 1,55,211 | 71,211 |
| 8. | 16% | 1,000 | 96,000 | 1,95,042 | 99,042 |
| 9. | 16% | 1,000 | 1,08,000 | 2,41,735 | 1,33,735 |
| 10. | 16% | 1,000 | 1,20,000 | 2,96,472 | 1,76,472 |
| 11. | 16% | 1,000 | 1,32,000 | 3,60,637 | 2,28,637 |
| 12. | 16% | 1,000 | 1,44,000 | 4,35,857 | 2,91,857 |
| 13. | 16% | 1,000 | 1,56,000 | 5,24,035 | 3,68,035 |
| 14. | 16% | 1,000 | 1,68,000 | 6,27,404 | 4,59,404 |
| 15. | 16% | 1,000 | 1,80,000 | 7,48,580 | 5,68,580 |
Note – It can be seen above that in the fourth year, only 12,000 rupees have been invested, but this year you have received a total return of 19,524 rupees. Therefore, even if you don’t have much money, you can still invest in a SIP plan with just 1,000 rupees per month. “I obtained this information from the Groww SIP Calculator.”
Best Equity Mutual Fund SIP Plan for 1000 per Month
| Fund Name | Last 1-Year Return | Last 3-year Return | Last 5-year Return |
| Quant Small Cap Fund | 54.23% | 46.61% | 35.30% |
| Nippon India Small Cap Fund | 52.62% | 40.92% | 30.21% |
| Tata Small Cap Fund | 36.91% | 37.47% | 28.17% |
| Quant Mid Cap Fund | 44.02% | 36.81% | 30.65% |
| ICICI Prudential Infrastructure Fund | 48.52% | 40.59% | 26.34% |
Best Debt Mutual Fund SIP Plan for 1000 per Month
| Fund Name | Last 1-Year Return | Last 3-year Return | Last 5-year Return |
| Aditya Birla Sun Life Medium Term Plan | 7.66% | 13.37% | 8.89% |
| Baroda BNP Paribas Credit Risk Fund | 8.27% | 11.11% | 7.845% |
| UTI Dynamic Bond Fund | 7.06% | 9.93% | 6.51 |
| Sundaram Low Duration Fund | 7.39% | 80.04% | 50.26% |
| Aditya Birla Sun Life Credit Risk Fund | 7.83% | 7.76% | 7.26% |
Best Hybrid Mutual Fund SIP Plan for 1000 per Month
| Fund Name | Last 1-Year Return | Last 3-year Return | Last 5-year Return |
| Quant Multi Asset Fund | 26.05% | 32.38% | 26.55% |
| Bank of India Mid&Small Cap Equity&Debt Fund | 38.94% | 26.94% | 21.83% |
| HDFC Balanced Advantage Fund | 33.96% | 25.15% | 18.97% |
| Quant Absolute Fund | 21.17% | 23.98% | 24.30% |
| ICICI Prudential Multi-Asset Fund | 25.63% | 24.52% | 19.44% |
Best Flexi Cap Mutual Fund SIP Plan for 1000 per Month
| Fund Name | Last 1-Year Return | Last 3-year Return | Last 5-year Return |
| Quant Flexi Cap Fund | 38.30% | 33.49% | 29.07% |
| JM Flexi Cap Fund | 45.18% | 26.39% | 23.14% |
| Parag Parikh Flexi Cap Fund | 37.80% | 23.86% | 24.04% |
| Franklin India Flexi Cap Fund | 34.42% | 23.06% | 19.60% |
| DSP Flexi Cap Fund | 34.27% | 18.46% | 19.85% |
Best Index Fund SIP Plan for 1000 per Month
| Fund Name | Last 1-Year Return | Last 3-year Return | Last 5-year Return |
| DSP Nifty 50 Equal Weight Index Fund | 30.30% | 21.57% | 18.25% |
| HDFC Index Dund Nifty 50 Plan | 20.44% | 15.25% | 15.61% |
| ICICI Prudential S&P BSE Sensex Index Fund | 19.01% | 14.21% | 15.54% |
| Bandhan Nifty 50 Index Fund | 20.51% | 15.34% | 15.86% |
| SBI Nifty Index Fund | 20.45% | 15.24% | 15.51% |
Note – The information I have given here related to Mutual funds has been taken from the Groww website.
Thank you Thank you Thank you