Best SIP Plans for 500 per Month^~

What are SIP Plans?

A SIP, or Systematic Investment Plan is a way to invest in market-linked funds in small and fixed amounts regularly—often monthly. These funds are offered by the mutual fund houses through the best mutual fund schemes in India. The insurance companies allow you to invest in the SIP plans under Unit Linked Insurance Plans (ULIPs), Annuity Plans, or Child Plans.

SIP investment helps you build wealth over time with the benefit of rupee-cost averaging, which reduces the impact of market ups and downs. SIPs are flexible; you can start with small amounts, increase contributions, or even pause them if needed. They are a convenient way to grow your savings and reach financial goals.

NOTE:

The ULIP funds offer the best SIP plans starting with a minimum amount of Rs. 1,000 per month. These plans provide you with high returns through market-linked investments along with a life cover for the financial security of your family. 

List of Best SIP Plans for 500 per Month in India in 2025^≈

The best SIPs to invest Rs. 500 per month in India, allow you to start investing regularly and benefit from the principle of compounding and rupee-cost averaging. 

The following list is sorted as per the top-performing SIP for Rs. 500 per month for 5 years:

Details of Some of the Best SIP Plans for 500 per Month^~

1. Invesco India PSU Equity Fund Direct-Growth

   Invesco India PSU Equity Fund Direct-Growth Plan is a mutual fund scheme offered by Invesco Mutual Fund. It is an equity fund that invests primarily in Public Sector Companies (PSUs) in India.

   Parameters	Details
   Fund Name	Invesco India PSU Equity Fund Direct-Growth
   NAV	₹ 77.04 (as on 18th October, 2025)
   AUM	₹1,390.50 Crs
   Expense Ratio	0.9%
   Return 3 Years	32.83%
   Return 5 Years	32.39%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹1,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 98.75%, Others: 1.25%
   Top Sectors	Industrials Energy & Utilities Financial Materials
   Top Holdings	Bharat Electronics Ltd State Bank of India Bharat Petroleum Corporation Ltd Hindustan Aeronautics Ltd Power Grid Corporation of India Ltd NTPC Ltd NTPC Green Energy Ltd. Hindustan Petroleum Corporation Ltd NHPC Ltd REC Ltd
   Fund Managers	Hiten Jain Sagar Gandhi
   Fund Type	Open-ended

2. Nippon India Index Fund BSE Sensex Plan Direct-Growth

   Nippon India Index Fund S&P BSE Sensex Plan Direct-Growth Plan is a passively managed index fund offered by Nippon India Mutual Fund. It tracks the performance of the S&P BSE Sensex, which is a benchmark index of the Indian stock market.

   Parameters	Details
   Fund Name	Nippon India Index Fund BSE Sensex Plan Direct-Growth
   NAV	₹ 45.33 (as on 18th October, 2025)
   AUM	₹905.47 Crs
   Expense Ratio	0.2%
   Return 3 Years	13.61%
   Return 5 Years	16.38%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	1st January, 2013
   Asset Allocation	Equity: 99.92%, Debt: 0%, Others: 0.08%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	HDFC Bank Ltd ICICI Bank Ltd Reliance Industries Ltd Infosys Ltd Bharti Airtel Ltd Larsen & Toubro Ltd ITC Ltd State Bank of India Axis Bank Ltd Tata Consultancy Services Ltd
   Fund Managers	NA
   Fund Type	Open-ended

3. Franklin U.S. Opportunities Equity Active FoF Regular-Growth

   The Franklin India Feeder Franklin US Opportunities Direct Fund-Growth Plan is a mutual fund scheme offered by Franklin Templeton Mutual Fund that invests in the Franklin US Opportunities Fund, a US-based equity fund. It is a feeder fund, which means it invests in another fund rather than directly in stocks.

   Parameters	Details
   Fund Name	Franklin U.S. Opportunities Equity Active FoF Regular-Growth
   NAV	₹ 79.37 (as on 18th October, 2025)
   AUM	₹4,223.16 Crs
   Expense Ratio	1.53%
   Return 3 Years	24.67%
   Return 5 Years	10.84%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	6th February, 2012
   Asset Allocation	Equity: 98.9%, Others: 1.1%
   Top Sectors	NA
   Top Holdings	FT India Feeder Franklin US Opportunities Fund Cash/Net Current Assets
   Fund Managers	NA
   Fund Type	Open-ended

   

4. SBI Technology Opportunities Fund Direct-Growth

   The SBI Technology Opportunities Fund Direct-Growth Plan is a mutual fund scheme offered by SBI Mutual Fund. It is an equity scheme that invests in a diversified portfolio of equity and equity-related securities of companies in the technology and technology-related sectors.

   Parameters	Details
   Fund Name	SBI Technology Opportunities Fund Direct-Growth
   NAV	₹ 248.17 (as on 18th October, 2025)
   AUM	₹4,687.43 Crs
   Expense Ratio	0.9%
   Return 3 Years	19.88%
   Return 5 Years	21.47%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 96.55%, Debt: 0.06%, Others: 3.39%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Financial Healthcare Technology
   Top Holdings	Infosys Ltd Bharti Airtel Ltd Coforge Ltd Firstsource Solutions Ltd LTIMindtree Ltd Zomato Ltd Zinka Logistics Solutions Ltd. Cognizant Technology Solutions Corp Forgn. Eq (CTSH) Microsoft Corportion (US) Forgn. Eq (MSFT) Repo
   Fund Managers	Pradeep Kesavan Vivek Gedda
   Fund Type	Open-ended

5. UTI Value Fund Regular Plan-Growth

   UTI Value Fund Direct-Growth Plan is a value-oriented equity mutual fund scheme offered by UTI Mutual Fund. It invests predominantly in equity and equity-related securities of companies across the market capitalization spectrum. 

   Parameters	Details
   Fund Name	UTI Value Fund Regular Plan-Growth
   NAV	₹ 172.22 (as on 18th October, 2025)
   AUM	₹9,898.51 Crs
   Expense Ratio	1.82%
   Return 3 Years	19.01%
   Return 5 Years	21.45%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	20th July, 2005
   Asset Allocation	Equity: 98.83%, Debt: 0.27%, Others: 0.9%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	HDFC Bank Ltd ICICI Bank Ltd Infosys Ltd Bharti Airtel Ltd Kotak Mahindra Bank Ltd Axis Bank Ltd State Bank of India Mahindra & Mahindra Ltd Reliance Industries Ltd Tech Mahindra Ltd
   Fund Managers	NA
   Fund Type	Open-ended

Factors to Consider Before Investing in Best SIP Plans for 500 per Month^~

Some important factors to consider before choosing the best SIP Plan for 500-per-month contributions in India are listed below:

1. Risk Tolerance:

   • This is how comfortable you are with the possibility of losing money on your investment. 

   • Equity SIPs offer potentially higher returns but come with more risk of short-term fluctuations. 

   • Debt SIPs are generally considered less risky but also offer lower returns.

2. Investment Goals:

   • Plan your investments as per your financial goals. 

   • A short-term goal (within 3 years), like a down payment on a gadget, might be better suited for a debt SIP investment. 

   • Long-term goals (5 years or more) like retirement could benefit from an equity SIP investment for potentially higher growth.

3. Investment Horizon:

   • Enquire for how long you want to stay invested in the best SIP Plan, as SIPs are meant for long-term investing. 

   • The longer the investment horizon, the more time you ride out market fluctuations and benefit from potential compounding returns in equity SIPs.

4. Expense Ratio:

   • This is a fee charged by the insurance company or mutual fund house to manage the SIP. 

   • Lower expense ratios mean more of your money goes towards investment.

5. Fund Performance:

   • Look at the fund's past performance, but remember past performance does not guarantee future results. 

   • Look for funds with a consistent track record of performing well compared to their benchmark index.

   • Make use of a SIP calculator to estimate your returns from the investments in the best SIP for 500 per month.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

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I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

12.4%

Equity Pension

16.14%

Global Equity Index Funds Strategy

17.8%

High Growth Fund

15.5%

Pension India Consumption Fund

20.55%

Multi Cap Fund

14.29%

Accelerator Mid-Cap Fund II

15.52%

Multiplier

14.14%

Frontline Equity Fund

18.41%

Pension Mid Cap Fund

10.66%

Equity II Fund

13.87%

US Equity Fund

14.47%

Growth Opportunities Plus Fund

11.51%

Equity Top 250 Fund

13.36%

Future Apex Fund

11.25%

Pension Dynamic Equity Fund

13.72%

Accelerator Fund

In Conclusion

Investing in the best SIP plans for Rs. 500 per month can be a great start to building long-term wealth. Look for SIP investments with low expense ratios and a proven track record of performance. Consider diversifying across different types of funds, such as equity, debt, or hybrid funds, based on your risk tolerance and financial goals. While the amount may seem modest, the discipline of regular investing can yield significant returns over time due to the power of compounding.