Recently, investing in mutual funds has grown a lot in India and people are actively diversifying their portfolios. Apart from lump sum investment, SIP (Systematic Investment Plan) has become quite popular as it allows investors to put in a pre-decided amount every month on the chosen mutual funds.  

SIPs are a great way to regularly invest in mutual funds while maximising returns and minimising the impact of fluctuations. It ensures that you consistently keep investing without having to manually conduct the transactions every time.  

SIPs let you invest small amounts consistently so you don’t have to put in huge sums of money while still gaining the benefits of compounding.  

So, if you also wish to start investing in mutual funds, below are the top 10 best SIP plans starting at just 1,000 per month to begin your investing journey. 

List of Best Best SIP Plans for 1000 per Month

No. 

Fund Name 

Fund Type 

Benchmark Index 

Expense Ratio (%) 

Risk Level 

1 

Motilal Oswal Midcap Fund 

Mid-Cap 

Nifty Midcap 150 TRI 

0.6 

Very High 

2 

HDFC Mid-Cap Opportunities Fund 

Mid-Cap 

Nifty Midcap 150 TRI 

0.72 

Very High 

3 

Mirae Asset Emerging Bluechip Fund 

Large & Mid-Cap 

Nifty LargeMidcap 250 TR 

0.59 

High 

4 

Kotak Equity Opportunities Fund 

Large & Mid-Cap 

NIFTY LargeMidcap 250 - TRI 

0.48 

High 

5 

Edelweiss Large Cap Fund 

Large-Cap 

NIFTY 100 TRI 

0.82  

Very High 

6 

Canara Robeco Emerging Equities Fund 

Large & Mid-Cap 

NIFTY Large Midcap 250 Total Return Index 

1.59 

Very High 

7 

Parag Parikh Flexi Cap Fund 

Flexi Cap 

NIFTY 500 TRI 

0.63 

High 

8 

Quant Large and Mid Cap Fund 

Large & Mid-Cap 

NIFTY Large Midcap 250 Total Return Index 

1.88 

Very High 

9 

ICICI Prudential Equity & Debt Fund 

Hybrid 

CRISIL Hybrid 35+65 Aggressive Index 

0.98 

Moderate to High 

10 

PGIM India Flexi Cap Fund 

Flexi Cap 

Nifty 500 - TRI 

0.43 

Very High 

How Do SIPs Work? 

To start investing in a Systematic Investment Plan (SIP), you first need to be verified. This means providing your personal information, like your bank account details and identification documents. Once you're verified, you can invest through the online platforms of asset management companies or other investing websites. 

When you invest in an SIP, the money is taken out of your account on a regular schedule. These funds are then allocated to purchase units in a mutual fund. The number of units you get depends on the fund's net asset value (NAV) on that day. 

Top 10 Best SIP Plans for 1,000/Month 

1. Motilal Oswal Midcap Fund 

The Motilal Oswal Midcap Fund is a great option for investors who want to invest in mid-sized companies through a systematic investment plan (SIP). 

Key Details: 

  1. Net Asset Value (NAV): As of October 2024, the NAV for the Direct Growth plan is ₹70.77. 

  1. Assets Under Management (AUM): The fund has a large AUM of ₹15,940 crore, showing that many investors trust it. 

  1. Benchmark Index: The fund follows the Nifty Midcap 150 TRI index, which tracks the performance of mid-cap stocks in India. 

  1. Fund Manager: Niket Shah manages the fund. He has a deep understanding of investing in mid-cap companies. 

  1. Expense Ratio: The expense ratio for the direct plan is only 0.60%, which is lower than the average for other mid-cap funds. 

  1. Fund Type: This is a mid-cap fund, meaning it invests mainly in medium-sized companies that have a lot of growth potential. 

  1. Risk Level: The fund is considered Very High Risk, which is normal for mid-cap funds because they can be more volatile. 

  1. Performance: The fund has done very well, with a 3-year return of 36.93% and a 5-year return of 35.27%. It's one of the best-performing mid-cap funds. 

2. HDFC Mid-Cap Opportunities Fund 

The HDFC Midcap Opportunities Fund is a popular mid-cap mutual fund for SIP investors. 

Key Details: 

  1. Current Metrics: As of October 2024, the NAV is ₹209.00, the AUM is ₹70,569 crores, the expense ratio is 0.72%, and the minimum SIP investment is ₹1,000. 

  1. Fund Management: Dhruv Muchhal manages the fund. He has a lot of experience in finance, making the fund well-managed. 

  1. Benchmark Index: The fund follows the Nifty Midcap 150 TRI index, investing in mid-sized companies. 

  1. Category and Risk: This is a mid-cap fund, which means it invests in medium-sized companies. It's less risky than a small-cap fund but offers higher ROI  

  1. than a large-cap fund and has a very high risk level. 

  1. Performance: The fund has done well, with strong returns over the past 1, 3, and 5 years. 

  1. Expense Ratio: The expense ratio is low at 0.72%, which means investors keep more of their returns. 

  1. Taxation: Short-term gains are taxed at 20%, while long-term gains over ₹1 lakh are taxed at 12.5%. 

3. Mirae Asset Emerging Bluechip Fund 

The Mirae Asset Emerging Bluechip Fund is a large and mid-cap equity mutual fund. It's known for its good performance and potential to create wealth over the long term.  

Key Details: 

  1. Net Asset Value (NAV): The NAV is ₹150.66. 

  1. Assets Under Management (AUM): The fund has an AUM of ₹40,205 crore. 

  1. Benchmark Index: The fund follows the Nifty LargeMidcap 250 TR index. 

  1. Fund Managers: Neelesh Surana has managed the fund since July 2010, and Ankit Jain has been involved since January 2019. 

  1. Expense Ratio: The expense ratio for the direct plan is 0.59%. 

  1. Risk: The fund is considered High Risk. It's suitable for investors who can handle the risk of investing in both large-cap and mid-cap stocks. 

  1. Category: This is a large and mid-cap equity fund. 

4. Kotak Equity Opportunities Fund 

The Kotak Equity Opportunities Fund is a mutual fund that invests in large and mid-sized companies. 

Key Details: 

  1. Current NAV: The NAV is ₹391.19 (as of October 7, 2024). 

  1. Assets Under Management (AUM): The fund has a large AUM of ₹25,292.75 crores. 

  1. Benchmark Index: The fund follows the NIFTY LargeMidcap 250 - TRI index. 

  1. Fund Managers: Harsha Upadhyaya has managed the fund since 2012, and Arjun Khanna joined in April 2022. 

  1. Expense Ratio: The expense ratio is 0.48%, which is one of the lowest in its category. 

  1. Category: This is a Large & Mid Cap Equity Fund. 

  1. Risk Level: The fund is considered High Risk due to its investments in large and mid-cap stocks. 

  1. 1-Year Returns: The fund has had a strong return of 41.14% in the past year. 

  1. SIP Minimum Investment: You can start a SIP with just ₹100. 

5. Edelweiss Large Cap Fund 

The Edelweiss Large Cap Fund is a mutual fund that invests mostly in large companies. It's a good choice for investors who want to grow their money over the long term. 

Key Details: 

  1. Net Asset Value (NAV): The NAV is ₹89.65 (as of September 29, 2024). 

  1. Assets Under Management (AUM): The fund has an AUM of ₹1081 crore. 

  1. Benchmark Index: The fund follows the NIFTY 100 TRI index. 

  1. Fund Managers: Bharat Lahoti has managed the fund since October 2021, and Bhavesh Jain has been involved since May 2017. 

  1. Expense Ratio: The expense ratio is 2.38% for the Regular Plan and 0.82% for the Direct Plan. 

  1. Category: This is a Large Cap Equity Fund. 

  1. Risk: The fund is considered Very High Risk. 

6. Canara Robeco Emerging Equities Fund 

The Canara Robeco Emerging Equities Fund invests in both large and mid-sized companies. This gives investors a mix of stability and growth. 

Key Details: 

  1. Net Asset Value (NAV): ₹258.38 (as of October 9, 2024) 

  1. Assets Under Management (AUM): ₹25,507 crores (as of September 2024) 

  1. Benchmark Index: The fund follows the NIFTY Large Midcap 250 Total Return Index. 

  1. Fund Managers: Avnish Jain and Ajay Khandelwal manage the fund by investing in a mix of large-cap and mid-cap stocks. 

  1. Expense Ratio: 1.59% for the regular plan. 

  1. Category: Equity: Large & MidCap fund. 

  1. Risk Level: Very High Risk. 

7. Parag Parikh Flexi Cap Fund 

The Parag Parikh Flexi Cap Fund is a mutual fund that invests in large, medium, and small-sized companies. It aims to grow your money over the long term by investing in stocks both in India and other countries. The fund uses a value investing strategy and focuses on companies with good growth potential. 

Key Details: 

  1. Net Asset Value (NAV): ₹71.85 (as of October 2024) 

  1. Assets Under Management (AUM): ₹82,441 Crore (as of September 2024) 

  1. Expense Ratio: 0.63% (Direct Plan) 

  1. Benchmark Index: NIFTY 500 TRI (Total Return Index) 

  1. Fund Managers: Rajeev Thakkar, Rukun Tarachandani, Raunak Onkar, and Raj Mehta manage the fund. 

  1. Category of Fund: Flexi Cap Fund (invests in companies of different sizes) 

  1. Risk Level: This fund is high risk. 

8. Quant Large and Mid Cap Fund 

The Quant Large and Mid Cap Fund has performed very well, with returns of over 54% in the last year and 29% over the last five years. This makes it a good choice for investors who want to grow their money. 

Key Details: 

  1. Net Asset Value (NAV): ₹127.33 (as of October 10, 2024) 

  1. Assets Under Management (AUM): AUM value is ₹3,828 crore as of September 2024. 

  1. Fund Managers: Sanjeev Sharma, Ankit A. Pande & Vasav Sahgal. 

  1. Expense Ratio: 1.88% 

  1. Fund Category: Large & MidCap Equity Fund 

  1. Risk Level: Very High Risk 

  1. Returns: 1 Year: 54.45%, 3 Years: 24.71%, 5 Years: 29.04% 

  1. Top Holdings: Reliance Industries (9.31%), Aurobindo Pharma (7.45%), ITC (8.18%). 

9. ICICI Prudential Equity & Debt Fund 

The ICICI Prudential Equity & Debt Fund is a hybrid fund, which means it invests in both stocks (about 67.25%) and bonds. This can give investors a mix of growth and stability. 

Key Details: 

  1. Net Asset Value (NAV): ₹421.47 (October 11, 2024) 

  1. Assets Under Management (AUM): ₹41,395.98 crores 

  1. Benchmark Index: CRISIL Hybrid 35+65 Aggressive Index 

  1. Fund Managers: It is managed by Manish Banthia, Mittul Kalawadia, Sri Sharma, Sharmila D'Mello, Akhil Kakkar, and Sankaran Naren. 

  1. Expense Ratio: 0.98% 

  1. Category: Hybrid: Aggressive Hybrid 

  1. Risk: Moderate to High 

10. PGIM India Flexi Cap Fund 

The PGIM India Flexi Cap Fund is a flexible fund that invests in companies of all sizes, from large to small. This gives it the ability to find growth opportunities in different parts of the market. 

Key Details: 

  1. Net Asset Value (NAV): ₹40.94 (as of October 8, 2024) 

  1. Assets Under Management (AUM): ₹6,562 crore 

  1. Benchmark Index: Nifty 500 - TRI 

  1. Fund Manager: Anandha Padmanabhan Anjeneyan has managed the fund for over 13 years. 

  1. Expense Ratio: 0.43% 

  1. Category of Fund: Flexi Cap Fund 

  1. Risk Level: Very High 

Things to Consider Before Investing in a ₹1,000 SIP Plan 

  1. Investment Goals: Think about why you're investing. Are you saving for something short-term or long-term like retirement? Your aspirations will shape your investment strategy. 

  1. Risk Tolerance: How much risk can you handle? Equity funds can give you higher returns but are also more risky. Debt funds are safer but might not give you as much return. Balanced funds are in the middle. 

  1. Fund Performance: Check how well the fund has done in the past. Look at how it performed in good and bad times, and compare it to other similar funds. 

  1. Fund Manager Expertise: The person who manages the fund is important. Look for funds managed by people with a lot of experience and a good track record. 

  1. Expense Ratio: The expense ratio is the fee the fund charges to manage your money. A higher expense ratio can reduce your returns over time, so choose a fund with a reasonable expense ratio. 

  1. Fund Type and Portfolio Diversification: Understand if the fund is an equity fund, a debt fund, or a hybrid fund. Make sure the fund invests in different kinds of stocks and assets to reduce risk. 

  1. Tax Implications: Think about how taxes will affect your investment. Equity funds and debt funds face varying tax treatments depending on their holding periods. 

  1. Liquidity and Exit Load: Check how easy it is to sell your investment and if there's a fee for selling it too soon. Low-fee or no-fee funds are ideal for quick access to your money. 

  1. Market Conditions: Be aware of what's happening in the economy and the stock market. This can help you make better decisions, especially about when to start or stop your SIP investments. 

  1. Review and Monitor: Keep checking your investment to make sure it's still working towards your goals. If you need to, you can change your investment based on changes in your goals, risk tolerance, or market conditions. 

Frequently Asked Questions 

1. Which mutual fund is best for SIP 1000 per month? 

The best mutual fund for SIP depends on your risk tolerance and investment goals. Some popular options include index funds, large-cap funds, and mid-cap funds. 

2. What is the best way to invest Rs. 1000 per month? 

Investing Rs. 1000 per month in a Systematic Investment Plan (SIP) is a good way to start investing in mutual funds. SIPs enable regular, predetermined investments, fostering gradual wealth accumulation. 

3. How much will I get if I invest Rs. 1000 in SIP? 

The amount you will earn from investing Rs. 1000 per month in SIP is influenced by the performance of the mutual fund you invest in. However, you can expect to earn returns of around 8-10% per year on average. 

4. Can I invest Rs. 1000 per month in SIP HDFC? 

Yes, you can invest Rs. 1000 per month in SIP HDFC. HDFC offers a variety of mutual fund schemes that you can invest in through SIP. 

5. What happens if I cancel an SIP?  

Discontinuing an SIP will cease your investment in the mutual fund. However, you will still retain the units you have already purchased. 

6. What is the typical return on SIP investments? 

Selecting the right mutual fund category can help you achieve higher SIP investment yields. However, you can expect to earn returns of around 8-10% per year on average.

7. How long can I invest in SIP? 

You have the flexibility to invest in SIP for an indefinite period. However, it is generally recommended to invest for at least 5-10 years to get the full benefits of compounding.