Last Updated on Jan 13, 2023 by Nikitha

Not every investment needs a lumpsum amount to invest. A few investments, like mutual funds, allows you (the investor) to invest in regular intervals via SIP (Systematic Investment Plan). Not just that, an SIP investment can be started with as low as Rs. 100. In this article, learn about the best SIP plans for Rs. 1,000 per month, along with factors to consider while investing in SIPs and taxation.     

Best SIP plans for Rs. 1,000 per month

Here’s the list of the 10 best SIP plans to invest in with a minimum amount of Rs. 1,000 or less. 

NameSub CategoryAUM (Rs. in cr.)Absolute Returns – 1Y (%)CAGR 3Y (%)CAGR 5Y (%)CAGR 10Y (%)
Aditya Birla SL Digital India FundSectoral Fund – Technology3,413.69-20.6929.0622.2321.29
Parag Parikh Flexi Cap FundFlexi Cap Fund28,546.26-6.0721.9915.830
IIFL Focused Equity FundFocused Fund3,500.96-3.2419.4115.490
Mahindra Manulife Multi Cap Badhat YojanaMulti Cap Fund1,544.63-1.0922.6314.550
ICICI Pru Value Discovery FundValue Fund27,794.8012.0725.5514.0417.75
Aditya Birla SL India GenNext FundSectoral Fund – Consumption3,279.112.2216.6112.9217.20
Invesco India Midcap FundMid Cap Fund2,694.35-0.5822.4712.9119.32
Invesco India Gold FundFoFs – Gold57.7016.7911.0112.735.10
Union Flexi Cap FundFlexi Cap Fund1,360.97-3.4118.0812.4512.68
Kotak Bluechip FundLarge Cap Fund5,256.161.4416.2612.3114.31

1. Aditya Birla SL Digital India Fund

This fund is from Aditya Birla Capital Mutual Funds with a minimum investment of Rs. 1,000. It was launched on 15th January 2000. The expense ratio of Aditya Birla SL Digital India Fund is 2.09%, and the NAV as of 10th January 2023 is Rs. 115.45. 


2. Parag Parikh Flexi Cap Fund

This fund from PPFAS Mutual Fund house was launched on 28th May 2013. It requires a minimum SIP investment of Rs. 1,000. The expense ratio of Parag Parikh Flexi Cap Fund is 1.73%, and the NAV as of 10th January 2023 is Rs. 47.65. 

3. IIFL Focused Equity Fund

Launched on 30th October 2014, IIFL Focused Equity Fund is from IIFL Mutual Fund house. It requires a minimum SIP investment of Rs. 1,000. The expense ratio of IIFL Focused Equity Fund is 1.93%, and the NAV as of 10th January 2023 is Rs. 30.20.  

4. Mahindra Manulife Multi Cap Badhat Yojana

This fund is from Mahindra Manulife Mutual Funds with a minimum SIP investment of Rs. 1,000. It was launched on 11th May 2017. The expense ratio of Mahindra Manulife Multi Cap Badhat Yojana is 2.27%, and the NAV as of 10th January 2023 is Rs. 20.75. 

5. ICICI Pru Value Discovery Fund

Launched on 16th August 2004, ICICI Pru Value Discovery Fund is from ICICI Prudential Mutual Fund house. It requires a minimum SIP investment of Rs. 100. The expense ratio of ICICI Pru Value Discovery Fund is 1.67%, and the NAV as of 10th January 2023 is Rs. 278.97.  

6. Aditya Birla SL India GenNext Fund

This fund is from Birla Sun Life Mutual Fund with a minimum SIP investment of Rs. 1,000. It was launched on 05th August 2005. The expense ratio of Aditya Birla SL India GenNext Fund is 2.12%, and the NAV as of 10th January 2023 is Rs. 141.45. 

7. Invesco India Midcap Fund

Launched on 19th April 2007, Invesco India Midcap Fund is from Invesco Mutual Fund house. It requires a minimum SIP investment of Rs. 500. The expense ratio of Invesco India Midcap Fund is 1.98%, and the NAV as of 10th January 2023 is Rs. 89.32.  

8. Invesco India Gold Fund

This fund is from Invesco Mutual Fund with a minimum SIP investment of Rs. 500. It was launched on 05th December 2011. The expense ratio of Invesco India Gold Fund is 0.45%, and the NAV as of 10th January 2023 is Rs. 16.53. 

9. Union Flexi Cap Fund

Launched on 10th June 2011, Union Flexi Cap Fund is from Union Mutual Fund house. It requires a minimum SIP investment of Rs. 1,000. The expense ratio of Union Flexi Cap Fund is 2.29%, and the NAV as of 10th January 2023 is Rs. 33.53.  

10. Kotak Bluechip Fund

This fund is from Kotak Mahindra Mutual Fund with a minimum SIP investment of Rs. 100. It was launched on 06th February 2003. The expense ratio of Kotak Bluechip Fund is 1.97%, and the NAV as of 10th January 2023 is Rs. 381.54. 

Note: The above list of the best SIP Plan for Rs. 1,000 is dated 11th January 2023. It is derived from Tickertape’s Mutual Fund Screener using the following filters:

  • SIP Investment
  • Absolute 1-yr returns
  • 5-yr CAGR – sorted high to low
  • 3-yr CAGR
  • 10-yr CAGR
  • Expense ratio

Factors to consider before investing in a SIP

Similar to any other investment, there are certain factors you need to be aware of before investing in a mutual fund SIP. 

  • Investment objective – The first and foremost factor to consider while investing in any investment is your investment objective. Know your investment goal and the time horizon. Only then you’ll be able to decide on the right SIP that suits your needs.  
  • Risk appetite – The amount you want to invest in an investment is the risk you are willing to take. Check your risk tolerance and invest accordingly. Ensure you have left room for emergency funds. 
  • Scheme’s performance – Not all the investments that fit your goals are good. Check the past performance of the scheme before investing. 
  • Additional costs – Check the fees involved in a SIP scheme before investing. 
  • Fund house credentials – Research the credentials of the fund house you are selecting the SIP from. 

Can a minimum investment of Rs. 1,000 in SIP make profits? 

Mutual funds SIP works on the magic of compounding. You investment increases on the basis of compound interest and a large corpus is accumulated at the end of the tenure. For example, if you’ve invested Rs. 1,000 in 2023 for returns of 10% per annum returns and tenure of 10 yrs, the profits are as follows: 

YearInvested amount per annum (Rs.)Wealth gained annually (Rs.)Total amount (Rs.)
202312,00067012,670
202412,0001,99726,667
202512,0003,46342,130
202612,0005,08259,212
202712,0006,87078,082
202812,0008,84798,929
202912,00011,0291,21,958
203012,00013,4411,47,399
203112,00016,1051,75,504
203212,00019,0482,06,552

At the end of the 10th year, the returns on your investment of Rs. 1,000 monthly will be Rs. 2,06,552. 

Taxation on SIP

Taxes on mutual fund SIPs depend on the investment time period as follows: 

  • Long-term capital gains (LTCG) – If the investment is made for more than 12 months, then it is considered as LTCG.
    – In the case of equity funds, if the investment gains exceed Rs. 1 lakh, you are taxed at 10%. And if the investment gains are less than Rs. 1 lakh, the gains are tax-free.
    – In the case of debt funds, the gains are taxed at 20% with indexation benefits. 
  • Short-term capital gains (STCG) – If the investment is made for less than 12 months, it is considered STCG.
    – In the case of equity funds, the STCG is taxed at 15%.
    – In the case of debt funds, the gains are taxed as per the investor’s income tax slab. 

Conclusion

SIP is a convenient option to invest in mutual funds. It allows you to invest at periodic intervals and also benefit from the power of compounding. However, like any other investment, there are certain risks like default, credit, liquidity risks, etc. Hence be careful and invest after thorough research about the scheme. 

You can use Tickertape to understand a fund’s fundamentals. Log in to Tickertape and search for a fund. In the fund page you’ll get all the important metrics like returns, AUM, financials and more. You can also add the fund to your Watchlist and monitor it on a regular basis.   

FAQs

1. How to get the list of best SIP plans for 5 yrs?  

You can get the list of the best SIP plans for 5 yrs on Tickertape by following the steps below: 
– Log in to Tickertape
– Launch the Mutual Fund Screener
– Click on ‘Add Filter’
– Search for ‘SIP Investment’ and select it 
– Search and select ‘Lock-in’. Set the lock-in years to high (3 to 5yrs)
Sort the results according to your preferred parameter 5Y CAGR, 3Y CAGR, 1Y Absolute Returns, etc., to get the best SIP plans for 5 yrs.

2. Which is the best SIP plan in India? 

There are several mutual fund SIP plans in India. You can get the list of the best SIP plans on Tickertape by following the steps below: 
– Log in to Tickertape
– Launch the Mutual Fund Screener
– Click on ‘Add Filter’
– Search for ‘SIP Investment’ and select it 
Sort the list according to your preferred parameter 3Y CAGR, 5Y CAGR, 1Y Absolute Returns, AUM etc., to find the best SIP plan in India. 


Nikitha
guest
0 Comments
Inline Feedbacks
View all comments