Best SIP Plans for Rs 5,000 Per Month Based on 5-yr Returns

For investors looking to steadily grow wealth, a monthly SIP of Rs 5,000 in a high-performing mutual fund is a great approach. With consistent contributions, you can benefit from market fluctuations, fostering disciplined savings and promoting long-term financial planning.

Why Choose SIPs for Rs 5,000 Monthly?

A Rs 5,000 monthly SIP is perfect for those committed to systematic investing with moderate capital. This amount is significant enough to create wealth over time, leveraging the power of compounding and rupee cost averaging. Here’s why SIPs are effective:

• Mitigates Market Volatility: Regular contributions reduce the risk of timing the market, evening out price fluctuations.
• Compounding Effect: Reinvested returns help your wealth grow exponentially.
• Instills Saving Discipline: A SIP encourages a consistent saving habit, building a strong financial foundation over time.

Key Factors to Consider

Selecting a mutual fund for a monthly SIP requires looking at essential parameters:

• Historical Performance: Choose funds with consistent returns of over 12%.
• Expense Ratio: Lower expense ratios mean more of your money stays invested.
• Fund Manager Track Record: A good fund manager with a reliable track record enhances the potential for sustained returns.
• Risk Profile and Goals: Match the fund’s risk level with your financial goals and risk tolerance.

Based on these criteria, here are the best SIP plans for Rs 5,000 per month:

Top SIP Mutual Funds for Rs 5,000 Monthly

Note: This list is dated November 4, 2024, and the funds are sorted based on above mention criteria. 

1. Quant Infrastructure Fund – Direct Plan-Growth

• AUM: Rs 3,936.99 Cr
• 5-Year Return: 318.11%
• NAV: Rs 43.53
• Exit Load:  0.50%, if redeemed within 3 months.
• Expense Ratio: 0.66%

With a 5-year return of 318.11%, an investment of Rs 5,000 per month would grow from Rs 3,00,000 to Rs 9,15,960.

2. Quant Small Cap Fund – Direct Plan-Growth

• AUM: Rs 26,644.70 Cr
• 5-Year Return: 205.32%
• NAV: Rs 291.61
• Exit Load: 1%, if redeemed within 1 year
• Expense Ratio: 0.64%

With a 5-year return of 205.32%, an investment of Rs 5,000 per month would grow from Rs 3,00,000 to Rs 9,15,960.

3. Nippon India Small Cap Fund  – Direct Plan-Growth

• AUM: Rs 62,259.60 Cr
• 5-Year Return: 165.47%
• NAV: Rs 196.92
• Exit Load: 1%, if redeemed within 1 year
• Expense Ratio: 0.66%

With a 5-year return of 165.47%, an investment of Rs 5,000 per month would grow from Rs 3,00,000 to Rs 7,96,405.

4. Bank of India Small Cap Fund – Direct Plan-Growth

• AUM: Rs 1,516.96 Cr
• 5-Year Return: 153.25%
• NAV: Rs 54.38
• Exit Load: 1%, if redeemed within 1 year for units beyond 10% of the investment 
• Expense Ratio: 0.48%

With a 5-year return of 153.25%, an investment of Rs 5,000 per month would grow from Rs 3,00,000 to Rs 7,59,735.

5. Canara Robeco Small Cap Fund – Direct Plan-Growth

• AUM: Rs 12,590.90 Cr
• 5-Year Return: 137.15%
• NAV: Rs 44.43
• Exit Load: 1%, if redeemed within 1 year
• Expense Ratio: 0.44%

With a 5-year return of 137.15%, an investment of Rs 5,000 per month would grow from Rs 3,00,000 to Rs 7,11,440.

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.