Best Plans to invest Rs.5000/month in Mutual Funds

Do you want to save rs.5000 every month and get a high return only in 5 to 10 years? If so, this article will help you to enhance your portfolio. Also, we have mentioned the best SIP Plans for Rs 5000 Per Month in India. 

Best SIP Plans for Rs 5000 Per Month in India. 

As a Mutual Fund investor, it isn't easy to invest your hard-earned money. But, if you put the right strategy, investing will become a potent tool for your money goals. So we should consider the fund's past performance, risk profile, and its returns. Then we should think of which is the best mutual fund to invest in. It is a good plan if you want to get a new home, for your child’s education, or prepare for a stress-free retirement, then you should opt for best SIP Plans for Rs 5000 Per Month will be the best choice. 

In this blog we will see a detailed review of the best SIP plan for 5000rs per month for 1, 3, 5, 10, 20 years. So that you can easily invest your 5000rs per month in these funds.

Many asset management companies (AMCs) allow you to start SIPs with as low as ₹100 or ₹500. This low entry point enables individuals to invest in the market and build a larger corpus in the long term. But in this article, we will learn  how you can invest in the best SIP plan for Rs. 5000 per month and enjoy good returns as per your risk profile and investment objective.

What is SIP?

Systematic Investment Plan is a method of investing to put your money constantly in mutual funds. It is an excellent choice for your short—and long-term goals. It is also a disciplined way to invest with only Rs. 5000 in a month and unlocks the benefits of compound returns. 

You can select any month or date of start or end, but there has to be a 30-day gap between two installments. Thus, by only investing rs.5000 in a Systematic Investment Plan, you can create high returns. Also, this plan allows you to invest a monthly sum in a single fund, like equity, debt, gold, etc. Thus, investors can invest small sums of money through this plan. But, most of the SIP Plans for Rs 5000 Per Month need a consistent payment plan- be it weekly, monthly, or quarterly. 

This investment holds simple investing. Thus, regular and periodic purchases of shares or units of securities of a fund or other investment are the principal matters of this principle.

Best SIP Plans for Rs. 5000 Per Month for 1 Year

If you have limited time to invest a small amount of money, you can look into the best SIP plans for 1 year. 

Best SIP Plans for Rs. 5000 Per Month for 3 Year

If you are planning to invest 5000 per month for 3 years, then we have provided you with the best SIP plan to invest. Given below is the best SIP plan for 3 years: 

Best SIP Plans for Rs. 5000 Per Month for 5 Year

Whether it be investing for 1 year, 2 years, or 5 years, you always need a plan for a better investment. So here you have the Best SIP plan for 5 years. 

Best SIP Plans for Rs. 5000 Per Month for 10 Year

Investment can’t be done in any plan, to get a good financial future and to invest in a better plan you always need to look for the best SIP plan. So given below are the best SIP plans for 10 years. 

List of 10 Best SIP Plans for Rs 5000 per Month

1. Nippon India Small Cap Fund

The Nippon India Small Cap Fund is a prominent offering from Nippon India Mutual Fund. This fund focuses on generating long-term capital appreciation by predominantly investing in small-cap stocks. It provides investors with an opportunity to tap into the high growth potential of smaller companies, which often have higher risk and reward profiles.

• Category: Equity
• Fund Objective: The primary objective of this scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of small-cap companies.
• Key Features: The fund maintains a diversified portfolio with a significant focus on small-cap stocks, aiming to capture the growth potential of emerging companies. It has a robust asset allocation strategy to mitigate risks associated with small-cap investments.
• AUM: ₹56,469 Crores 
• Expense Ratio: 0.64%
• Category of Fund: Small Cap
• Risk: Very High Risk
• Ideal For: Investors with a high-risk tolerance looking for significant growth potential and willing to invest for the long term to ride out market volatility.
• Fund Manager: Samir Rachh

2. Quant ELSS Tax Saver Fund

In the past two years, this fund scheme has ranked one on the basis of its return. This tax plan has given a 40% CAGR in the average category of 17%. The returns have gained popularity among most investors, and everyone wants to invest in this fund. Comparatively, this fund is more allocated to mid- and Small-Cap stocks. 

• Category: ELSS fund
• Fund Objective: Managing money actively by investments in popular industries and equities in the times of sell. 
• Key Features: Uses predictive analysis to identify well-performing equities. 
• AUM: ₹10,528 Cr
• Expense Ratio: 0.77%
• Category of Fund: Multi-Cap 
• Risk: Very High risk
• Ideal For: An investor or HUF wants to save on taxes up to Rs. 46800 each year. 
• Fund Manager: Vasav Sahgal 

3. Motilal Oswal Midcap Fund

In the past two years, the Motilal Oswal Midcap Fund has consistently outperformed its peers, delivering impressive returns. This mid-cap fund has achieved a 30% CAGR, significantly higher than the average category return of 20%. Its stellar performance has attracted a large number of investors, making it a popular choice for those seeking substantial growth. The fund predominantly allocates its assets to mid-cap stocks, capitalizing on the growth potential of emerging companies.

• Category: Equity
• Fund Objective: The primary objective of this scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies.
• Key Features: Diversified portfolio primarily focused on mid-cap stocks, which allows investors to benefit from the growth potential of emerging leaders in various sectors.
• AUM: ₹12,628 Crores 
• Expense Ratio: 0.61%
• Category of Fund: Mid-Cap
• Risk: Very High Risk
• Ideal For: Investors with a high-risk tolerance seeking to benefit from the growth potential of mid-cap stocks and willing to invest for the long term to manage market volatility.
• Fund Manager: Niket Shah

4. Axis Small Cap Fund

This fund invests in small-cap companies for higher growth opportunities. It is one of the most preferred funds and stands out as a top performer all over India. The Axis Small Cap Fund’s open ended mutual fund was incepted on 29 November 2013, and since then, it has provided a CAGR of 23.73%. 

• Category: Equity
• Fund Objective: Bottom-up technique to invest in small-cap funds to identify long-cap businesses.  
• Key Features: Annualised higher returns than category.
• AUM: ₹22,262 Crores
• Expense Ratio: 0.55%
• Category of Fund: Small Cap
• Risk: Very High
• Ideal For: Small-cap investors who can patiently invest and can digest volatility for short-terms. 
• Fund Manager: Mayank Hyanki 

5. Mirae Asset Large & Mid Cap Fund

The scheme has a mandated investment plan to invest at least 65% of its assets in each large-cap and small-cap stock. It gives investors a golden chance to participate in the growth of emerging companies, which can grow into the following blue-chip companies. Also, Mirae Asset Large & Mid Fund aims to invest in high-profile businesses at a reasonable price range and hold the same range over an extended time period. 

• Category: Open-ended fund 
• Fund Objective: Giving growth by maintaining consistency over the long term. 
• Key Features: Wealth Creation
• AUM: ₹37,846 Crores
• Expense Ratio: 0.58%
• Category of Fund: Equity
• Risk: Moderately High
• Ideal For: Investors who want both large-cap and mid-cap stocks by using a single portfolio.
• Fund Manager: Ankit Jain

6. Quant Large and Mid Cap Fund

Quant Large and Mid Cap Fund has made its mark by delivering strong performance in recent years. This fund focuses on investing in both large-cap and mid-cap stocks, providing a balanced approach to capital appreciation. With a strategic allocation to companies of varying sizes, the fund aims to capture growth opportunities across the market spectrum.

• Category: Equity
• Fund Objective: The primary objective of this scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of large-cap and mid-cap companies.
• Key Features: A diversified portfolio that balances large-cap stability with mid-cap growth potential.
• AUM: ₹3,290 Crores 
• Expense Ratio: 0.66%
• Category of Fund: Large and Mid Cap
• Risk: High Risk
• Ideal For: Investors seeking a balanced approach with exposure to both large-cap stability and mid-cap growth, suitable for a long-term investment horizon.
• Fund Manager: Ankit A Pande

7. Edelweiss Mid Cap Fund

Edelweiss Mid Cap Fund has consistently ranked high based on its performance. This mid-cap fund has delivered a 28% CAGR, significantly above the average category return of 18%. This Edelweiss mutual fund's focus on mid-cap stocks with strong growth potential has made it a preferred choice for many investors.

• Category: Equity
• Fund Objective: The primary goal is to generate long-term capital appreciation by investing in a diversified portfolio of mid-cap companies.
• Key Features: Diversified across various sectors with a primary focus on mid-cap stocks.
• AUM: ₹6,625 Crores (as of the latest available data)
• Expense Ratio: 0.33%
• Category of Fund: Mid Cap
• Risk: Very High Risk
• Ideal For: Investors with a high-risk tolerance seeking substantial growth through mid-cap investments and willing to stay invested for the long term.
• Fund Manager: Trideep Bhattacharya

Also Read Best Edelweiss Equity Funds

8. HSBC Small Cap Fund

HSBC Small Cap Fund has garnered attention for its impressive performance. Specializing in small-cap stocks, this fund has delivered a 32% CAGR, outpacing the average category return of 20%. Its focus on high-growth potential companies in the small-cap segment makes it an attractive option for aggressive investors.

• Category: Equity
• Fund Objective: To generate long-term capital growth by predominantly investing in small-cap companies.
• Key Features: Primarily invested in small-cap stocks with high growth potential.
• AUM: ₹16,397 Crores (as of the latest available data)
• Expense Ratio: 0.65%
• Category of Fund: Small Cap
• Risk: Very High Risk
• Ideal For: Investors with a high-risk appetite looking for significant growth potential in the small-cap segment, suitable for long-term investment.
• Fund Manager: Venugopal Manghat

9. HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Fund has been a top performer in the mid-cap category. It has consistently delivered a 27% CAGR, surpassing the average category return of 18%. The fund's focus on quality mid-cap stocks has made it a popular choice among investors seeking growth.

• Category: Equity
• Fund Objective: The primary aim is to generate long-term capital appreciation by investing in a diversified portfolio of mid-cap companies.
• Key Features: Diversified across various sectors with a focus on quality mid-cap stocks.
• AUM: ₹70,570 Crores (as of the latest available data)
• Expense Ratio: 0.74%
• Category of Fund: Mid Cap
• Risk: Very High Risk
• Ideal For: Investors with a long-term horizon and a high-risk tolerance, looking to benefit from the growth potential of mid-cap companies.
• Fund Manager: Chirag Setalvad

10. ICICI Prudential Technology Fund

This fund has ₹12,671 Crores worth of assets under management (AUM). It is part of the ICICI Prudential Mutual Fund House and is an Open-ended Sectoral Technology scheme. The primary goal of this scheme is to look at long-term appreciation by investments in equity and securities for equity regarding technology and companies based on technology. Under the Benchmark Index, a large amount of shares of Asset Under Management will be invested.

• Category: Equity
• Fund Objective: Invests across technology-related companies
• Key Features: Portfolio Composition, Asset Allocation
• AUM:  Cr
• Expense Ratio: 0.92%
• Category of Fund: Sectoral-Technology
• Risk: Very High risk
• Ideal For: Investors who know macro trends in a detailed manner 
• Fund Manager: Vaibhav Dusad

Conclusion

In conclusion, you probably heard that mutual funds are subject to market risks. So, consult with an expert before investing. They can help you to choose the best investments. Also, before going for SIP Plans for Rs 5000 Per Month, it is necessary to check your comfort level with the risks.

Faqs:

Q. Which SIP is best for 5000 per month?

There are many funds, such as Parag Parikh Flexi Cap, Nippon India Growth Fund, and ICICI Prudential FMCG. But always choose according to your research and knowledge.

Q. Which SIP has the highest return?

Quant Mutual Fund has given the highest returns. Its small cap, mid cap, and Quant ELSS Tax Saver generated 37.30%, 31.84%, and 30.37% returns in the last seven years, respectively.

Q. How do you invest 5000 rupees per month in India?

Try Systematic Investment Plans. With disciplined investments, you can get compound returns with only Rs 5000.

Q. Where should I invest my 5000 rupees?

You can give your trust to SIPs. Only this small amount can give you the maximum returns in the long run. 

Q. What is the return of 5000 monthly SIP?

The return depends on the funds that you are choosing and for how many years you are investing. Here are some of the best funds with its return.

Q. How to make 1 crore by investing 5000 per month?

To make 1 crore by investing 5000 per month, start early and invest in equity mutual funds, which historically offer returns of 12-15% per annum. With disciplined investing and the power of compounding, you can achieve this goal in approximately 20-25 years.

Q. Is 5k SIP good?

Yes, a ₹5000 SIP (Systematic Investment Plan) is a good way to start investing. It offers several benefits:

1. Discipline: Encourages regular savings and investing.
2. Compounding: Takes advantage of the power of compounding over the long term.
3. Rupee Cost Averaging: Reduces the impact of market volatility by averaging the purchase cost of units.
4. Affordability: Makes it accessible to start investing with a modest amount.

Overall, a ₹5000 SIP can help build substantial wealth over time if invested in the right mutual funds and maintained consistently.