SIP Plans for 5000 Monthly

SIPs help you lower the risk of market fluctuations while making it affordable for the younger working class to invest in the equity market. By investing just Rs. 5000 every month in an SIP, you can create high returns to meet your long-term goals. A systematic investment plan allows you to invest a monthly sum in a single type of fund, be it equity, debt, gold, etc.

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SIP Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80 C
Zero LTCG Tax
Zero LTCG Tax^ (Unlike 10% in Mutual Funds)
Disciplined & worry-free investing
Disciplined & worry-free investing

You can choose to diversify by investing in different types to balance out the risk. A key advantage of SIPs is that you can monitor how the funds are performing based on which you can either increase or decrease the amount of investment. However, in order to enjoy higher returns, you should ideally stay invested for a minimum of 5 years. You can use the SIP calculator to analyse the SIP returns.

Here is a look at a mix of equity and debt funds that you can explore to start a monthly SIP of Rs. 5000.  

Monthly SIP Funds at Rs. 5000

Fund Name Category Type 5 Year Return Risk Profile
ICICI Prudential Technology Direct Plan Growth Equity Sectoral / Thematic 28.82% Very High Risk
Aditya Birla Sun Life Corporate Bond Fund Direct Growth Debt  Corporate Bond 7.45% Moderate to low risk
Axis Small Cap Fund Direct Growth Equity  Small Cap 20.12% Very High Risk
Tata Digital India Fund Direct Growth Equity  Sectoral / Thematic 30.04% Very High Risk
ICICI Prudential Short Term Fund Direct Plan Growth Debt Short Duration 7.59% Moderate to low risk
Mirae Asset Tax Saver Fund Direct Growth Equity ELSS 16.63% High Risk
Quant Tax Plan Direct Growth Equity ELSS 22.73% High Risk
Mirae Asset Emerging Bluechip Fund Direct Growth Equity  Large & Mid Cap 15.52% Very High Risk

People Also Read: SWP Calculator

Category-wise SIP Details

Plans should be opted for by assessing how much risk you are willing to take and what goals you are trying to accomplish. The following sections offer deeper insight into the different categories to help you choose the best monthly SIP plans for Rs. 5000.

  1. Equity Funds

    Equity funds are those that invest in stocks and shares of a company. Depending on the performance of the company, the value of the funds goes up or down. This difference is what determines your returns at the base level. 

    Equity Sectoral / Thematic

    Sectoral / thematic funds invest in the stocks of companies belonging to a particular niche. For instance, the ICICI Prudential Technology Fund and the Tata Digital India Fund invest largely in the equity of tech or IT companies. The 3-year annualized return for each fund is 34.25% and 31.11% respectively. A monthly SIP of Rs. 5000 in each of these funds for at least 3 years can increase your investment of Rs. 1.8 Lakhs to over Rs. 3 Lakhs.  

    Equity Funds by Market Cap

    Funds that invest in the equities of large companies (ranking in the top 100 per SEBI guidelines) are large cap funds. Similarly, small cap funds are those that invest in companies ranking above 250. Mid-cap funds fall in the range between. The greater the market capitalization of a company, the more likely it is to get steady consistent returns. 

    The 3-year annualized return for the Axis Small Cap Fund is 30.08%. For Mirae Asset Emerging Bluechip Fund, which invests in a mix of large and mid-cap companies, it is 21.18%. 

  2. Tax Saving Funds

    These are primarily equity-based investments, however, these come with tax benefits under section 80C of the Income Tax Act, 1961. A monthly SIP of Rs. 5000 in such funds can help you save on taxes on the extra income earned through the returns on investments. 

    Equity ELSS

    Both Quant Tax Plan and Mirae Asset Tax Saver Fund come with a lock-in period of 3 years during which you cannot withdraw any funds. Their 3-year annualized returns are 36.82% and 20.61% respectively.

  3. Debt Funds

    Debt funds are low-risk in nature, and subsequently, the returns are lower than equity instruments. Ideally, investors should split their SIP investments into both equity and debt to generate decent returns while erring on the side of caution. 

People Also Read: Systematic Withdrawal Plan (SWP)

Summing Up!

A monthly SIP plan for Rs. 5000 can give you increased returns if you continue to stay invested for 5 years or more. Given the range of options available, stick to safer options such as hybrid funds and large-cap funds if you have just started out. As you start to understand more, gradually increase the investment amount and move towards a diversified portfolio comprising of both equity and debt funds.

+For Mutual Fund midcap category Returns https://www.morningstar.in/tools/mutual-fund-category-performance.aspx & for Insurance midcap fund category Returns- https://www.morningstar.in/tools/insurance-fund-category-performance.aspx
*Past 10 Year annualised returns as on 01-12-2023
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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