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.

SIP Insurance Plan Benefits

Start SIP with as low as ₹1000

No hidden charges

Save upto ₹46,800 in Taxunder section 80C^{^}

Zero LTCG Tax^¶

Disciplined & worry-free investing

Insurance Companies
Mutual Funds

Fund Name	3 Years	5 Years	10 Years
	Returns
Virtue II PNB Metlife	18.68%	25.83%	16.48% View Plan
Pure Equity Birla Sun Life	17.56%	21.84%	15.07% View Plan
Large Cap Equity Fund Tata AIA	18.45%	21.82%	14.88% View Plan
Grow Money Plus Fund Bharti AXA	14.74%	18.58%	14.12% View Plan
Pure Stock Fund Bajaj Allianz	17.34%	20.53%	14.04% View Plan
Diversified Equity Fund HDFC Standard	14.77%	17.79%	13.96% View Plan
Growth Super Fund Max Life	15.5%	17.5%	12.83% View Plan
Equity Fund SBI	14.88%	16.53%	12.1% View Plan
Bluechip Fund ICICI Prudential	13.23%	15.89%	11.33% View Plan
Growth Plus Fund Canara HSBC Oriental Bank	12.92%	13.89%	10.36% View Plan

Updated as of Nov 2024

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Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	24.92%	31.48%	21.87%
Flexi Cap Fund PARAG PARIKH	20.69%	26.41%	19.28%
Large and Mid-Cap Fund EDELWEISS	22.34%	24.29%	17.94%
Equity Opportunities Fund KOTAK	24.64%	25.01%	19.45%
Large and Midcap Fund MIRAE ASSET	19.74%	24.32%	22.50%
Flexi Cap Fund PGIM INDIA	14.75%	23.39%	-
Flexi Cap Fund DSP	18.41%	22.33%	16.91%
Emerging Equities Fund CANARA ROBECO	20.05%	21.80%	15.92%
Focused fund SUNDARAM	18.27%	18.22%	16.55%

Updated as of Nov 2024

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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. Tools like an SIP Calculator help you determine how much you need to invest to achieve your goals in 5 years.

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

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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.

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%.
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.
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.