Best SIP Plans for Rs 1000 per Month Based on 5-yr Returns

Starting your investment journey with a SIP plan for Rs 1000 per month can be a smart move. Despite being a small monthly commitment, it allows you to benefit from the power of compounding and builds a habit of disciplined investing. SIPs are a hassle-free way to work toward long-term financial goals, suitable for both beginners and experienced investors alike. Below, we explore the best SIP plans for Rs 1000 per month in India, particularly focusing on top performers in the Flexi Cap category based on their 5-year returns.

Why Invest in SIPs with Rs 1000 per Month?

A Systematic Investment Plan (SIP) helps you invest consistently, even if you start with a small amount like Rs 1000. With regular contributions, SIPs accumulate over time, growing through the power of compounding. Think of it as adding small drops of water that eventually fill a large reservoir. This disciplined approach minimizes risk and allows you to navigate market fluctuations smoothly.

Best SIP Plans for Rs 1000 per Month

The Flexi Cap category offers diversified exposure across various market caps, providing balanced risk and potential for high returns. Here are 5 top-performing Flexi Cap funds based on their 5-year returns:

Note: This list is dated November 4, 2024, and the funds are sorted based on 5-year returns.

1. Quant Flexi Cap Fund – Direct Plan-Growth

• • AUM: Rs 7,912.16 Cr
  • 5-Year Return: 128.33%
  • NAV (as of Oct 31, 2024): Rs 112.19

• Exit load: 1%, if redeemed within 15 days

• Expense ratio: 0.59%

Investing Rs 1000 per month in this fund over 5 years would grow a total of Rs 60,000 to approximately Rs 1,36,999. Quant Flexi Cap Fund has demonstrated strong performance and is ideal for investors looking for aggressive growth.

2. JM Flexi Cap Fund – Direct-Growth

• • AUM: Rs 4,531.48 Cr
  • 5-Year Return: 123.88%
  • NAV (as of Oct 31, 2024): Rs 117.66

• Exit load: 1%, if redeemed within 30 days

• Expense ratio: 0.42%

An investment of Rs 1000 per month in JM Flexi Cap Fund would turn Rs 60,000 into approximately Rs 1,34,325 over 5 years. This fund can be considered by investors looking for consistent returns with a robust growth track record.

3. HDFC Flexi Cap Fund – Direct Plan-Growth

• • AUM: Rs 66,225.06 Cr
  • 5-Year Return: 108.49%

• NAV: 2,043.17

• Exit load: 1%, if redeemed within 1 year
• Expense ratio:0.77%

With a 5-year return of 108.49%, an investment of Rs 1000 per month would grow from Rs 60,000 to Rs 1,25,095. HDFC Flexi Cap Fund’s strong performance makes it a suitable option for moderate growth with stability from a trusted fund house.

4. Franklin India Flexi Cap Fund – Direct-Growth

• • AUM: Rs 18,251.58 Cr
  • 5-Year Return: 94.12%

• NAV: 1,773.29

• Exit load: 1%, if redeemed within 1 year

• Expense ratio: 0.92%

An SIP of Rs 1000 per month would result in Rs 60,000 growing to around Rs 1,16,470 over 5 years. Franklin India Flexi Cap Fund has a history of consistent returns over the period of 5 years. 

5. Edelweiss Flexi Cap Fund – Direct-Growth

• AUM: Rs 2,439.34 Cr
• 5-Year Return: 93.21%
• NAV (as of Oct 31, 2024): Rs 43.34
• Exit load:1%, if redeemed within 90 days.
• Expense ratio:0.45%

Edelweiss Flexi Cap Fund would turn an investment of Rs 1000 per month into Rs 1,15,923 over 5 years. With its strong returns, this fund is suitable for investors seeking balanced growth with moderate risk.

Conclusion: Building Wealth with Small Steps

Investing Rs 1000 per month in these top SIP plans can be the first step toward achieving long-term financial goals. Each of these funds provides a unique balance of risk and reward, allowing even small investments to yield significant returns over time. By starting early and maintaining consistency, these small monthly investments can help create wealth in the long run.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.