Best SIP for ₹500 per Month in 2025: Small Investment, Big Future
Investing isn’t just for the wealthy anymore. With just ₹500 per month, you can start your journey toward financial freedom in 2025. Thanks to Systematic Investment Plans (SIPs), even students, entry-level professionals, and homemakers can grow their wealth steadily.
In this blog, we explore the best SIPs under ₹500 per month, how to choose the right fund, and tips to maximize your returns with minimal investment.
📌 What Is a SIP?
A Systematic Investment Plan (SIP) is a disciplined way to invest a fixed amount regularly in mutual funds. Rather than investing a large sum at once, SIPs allow you to invest small amounts monthly, such as ₹500 or ₹1,000.
Why SIPs work:
- You benefit from rupee-cost averaging
- You get the power of compounding over time
- You avoid timing the market
💡 Why Start a SIP with Just ₹500?
While ₹500 may seem small, over the long term it can generate a sizeable corpus.
Let’s say you invest ₹500/month for 15 years at 12% average annual returns:
Your corpus = ₹2,00,799
(You invested just ₹90,000!)
✅ Starting small is better than not starting at all.
🏆 Top 7 SIP Funds to Start with ₹500 in 2025
Here are the best mutual funds that allow a SIP with just ₹500/month, along with their recent performance, category, and risk profile.
1. Nippon India Small Cap Fund
- Type: Small-cap equity
- Minimum SIP: ₹100
- 3-Year Return: ~23% (as of 2025)
- Why invest? Great for long-term aggressive investors seeking high returns. One of the top-performing small-cap funds.
🔸 High-risk, high-reward. Ideal for 5–10 years or more.
2. Quant Active Fund – Direct Plan Growth
- Type: Multi-cap equity
- Minimum SIP: ₹500
- 3-Year Return: ~25%
- Why invest? This multi-cap fund invests across large, mid, and small-cap companies and has shown strong consistent returns.
🔸 Best for those who want diversification across all caps.
3. Parag Parikh Flexi Cap Fund
- Type: Flexi-cap equity + international exposure
- Minimum SIP: ₹500
- 3-Year Return: ~18%
- Why invest? Offers exposure to Indian and global stocks (like Google, Amazon), giving global diversification even with ₹500/month.
🔸 Great for beginners seeking stable growth + global diversification.
4. Axis Bluechip Fund
- Type: Large-cap equity
- Minimum SIP: ₹500
- 3-Year Return: ~12%
- Why invest? Invests in top Indian companies like Infosys, HDFC, TCS. Lower risk compared to small-cap/mid-cap funds.
🔸 Ideal for conservative investors.
5. SBI Equity Hybrid Fund
- Type: Hybrid (equity + debt)
- Minimum SIP: ₹500
- 3-Year Return: ~11%
- Why invest? Balances risk and return by investing in both stocks and bonds. Perfect for first-time investors.
🔸 Balanced and less volatile.
6. UTI Nifty 50 Index Fund
- Type: Index fund
- Minimum SIP: ₹500
- 3-Year Return: ~13%
- Why invest? Tracks the top 50 companies on the NSE. Low expense ratio and consistent returns.
🔸 Best for passive investors and those who want to match market returns.
7. ICICI Prudential Bluechip Fund
- Type: Large-cap equity
- Minimum SIP: ₹100
- 3-Year Return: ~14%
- Why invest? Focuses on bluechip companies with strong fundamentals. Less volatile and ideal for low-risk investors.
🔸 Safe long-term bet for ₹500/month SIP.
📈 How to Start SIP with ₹500/Month
Starting a SIP is easy and can be done online in minutes. Here’s how:
✅ Step 1: Choose a mutual fund
Pick a fund that matches your goal (growth, safety, diversification).
✅ Step 2: Complete KYC
You can complete eKYC online using your Aadhaar, PAN, and bank details.
✅ Step 3: Select SIP amount & date
Choose ₹500 as your amount and pick a SIP date (e.g., 5th or 10th of every month).
✅ Step 4: Link your bank account
Enable auto-debit via your bank for hassle-free investing.
✅ Step 5: Start investing!
You’re all set! Sit back and watch your money grow.
📲 You can invest through platforms like:
- Groww
- Zerodha Coin
- Paytm Money
- Kuvera
- ET Money
- AMCs’ official websites
🧠 Tips to Maximize SIP Returns (Even with ₹500)
- Be consistent: Never skip a SIP date
- Invest long-term: Minimum 5–10 years
- Increase SIP when possible: Gradually raise to ₹1,000–₹2,000
- Avoid withdrawing early: Compounding needs time
- Review yearly: Check fund performance annually
- Use SIP top-up feature: Automatically increase SIP every year
💬 Real-Life Story: Ravi, Age 24, Invested ₹500
Ravi, a recent graduate in Bengaluru, started SIPs in 2020 with just ₹500/month in Parag Parikh Flexi Cap and Nippon India Small Cap.
In 2025, his total investment = ₹30,000
Corpus today = ₹52,500+
💡 He has now increased his SIP to ₹1,500/month and plans to continue till 2035 to buy his first home.
❓ FAQs: Best SIP for ₹500/month
🟠 Is ₹500 enough to start SIP?
Yes, most mutual funds allow starting SIPs at ₹500/month. Some even allow ₹100.
🟠 Can I increase my SIP later?
Yes, anytime. Most platforms support SIP top-ups.
🟠 Which is best for low risk?
SBI Equity Hybrid Fund or Axis Bluechip Fund.
🟠 How much can ₹500 SIP grow in 10 years?
At 12% return, you’ll have over ₹1.15 lakh from just ₹60,000 invested.
🏁 Final Words: Small Start, Big Future
Starting a SIP with ₹500/month in 2025 is not just affordable—it’s smart. With compounding, consistency, and patience, your small investment today can grow into a substantial corpus tomorrow.
So, whether you’re a college student, first-jobber, or homemaker, there’s no reason to wait. Start now and let your money work for you.
🔗 Ready to Begin?
Here are direct links to top SIP platforms:
