Mutual Funds Under Rs. 500
Mutual funds under Rs. 500 can be start investing by registering a SIP on monthly basis. Here is a list of some of India’s Top Diversified Equity Funds across market capitalizations. These Funds are highest rated Equity Funds & are suitable for long-term investment horizons.
- Start SIP as low as Rs.500 or chose a higher amount that you can commit every month
- With DIVADHVIK’s easier ways to manage SIPs, you can skip or cancel your SIPs at tap of a button
- With option to modify SIP amount, you can increase or decrease your monthly investment, if & whenever you wish to
Fund Name | Rating | Catagory | 5 Yrs Return | 10 Yrs Return | Riskometer |
Quant Mid Cap Fund | Mid Cap | 26.81 | 18.73 | Very High | |
ICICI Prudential Infrastructure Fund | Sectoral-Infrastructure | 26.10 | 17.14 | Very High | |
PGIM India Midcap Opportunities Fund | Mid Cap | 25.62 | -- | Very High | |
Quant Multi Asset Fund | Multi Asset Allocation | 25.42 | 17.33 | High | |
SBI Contra Fund | Value Oriented | 25.39 | 17.37 | Very High | |
Axis Small Cap Fund | Small Cap | 25.07 | -- | Very High | |
Motilal Oswal Midcap Fund | Mid Cap | 23.87 | -- | Very High | |
Quant Absolute Fund | Aggressive - Hybrid | 22.67 | 18.05 | Very High | |
Parag Parikh Flexi Cap Fund | Flexi Cap | 21.19 | 18.53 | Very High |
How Does SIPs Work for you?
Systematic Investment plan or SIP is a very popular way for investors to invest in India in mutual funds. An investor chooses to invest through SIP, needs to understand related process and information.
- Mutual fund scheme to invest into
- Specific amount to invest in each instalment
- Need to frequency of payment (daily, weekly, Monthly, quarterly, semester or Yearly)
- Understand the banking process for auto debit on set dates like ECS or Banking Mandate
The Benefits of Investing via SIPs in Mutual fund?
Any small or big investor can start investing via SIPs in mutual fund under Rs. 500 per month. The following are some of the benefits of investing via SIPs:
Easy to invest– SIPs are becoming tremendously getting more popular by every day, and the easy and convenient that it offers to investors is a significant reason behind such popularity. If you choose the SIP route, you will not have to worry about setting aside funds every month. Instead, you need to issue standing instructions to your bank. Every month/quarter and on a predetermined date, the bank will auto-debit the amount from your account and deposit it in the fund of your choice.
Helps in investing regularly– if you choose the SIP mode for the investment, you can invest daily, weekly, monthly, quarterly or every six months at a pre-decided date. Since the money is automatically debited, this inculcates a habit of investing regularly in investors. As a result, they do not have to evaluate the market all the time.
Rupee cost averaging– This is a significant advantage investors get when they invest money in mutual funds via SIP. When you systematically invest a specific sum of money at periodic intervals, you get to purchase more fund units when the prices are low and a lower quantity of units when the prices are high. This reinforces the fundamental principle of investing i.e. buy-low and sell-high. Further, this brings down your average cost per unit over the long-term.
Power of compounding– Mutual funds can potentially turn the investor’s small initial investment into sizable returns as the scheme matures. If the investor does not redeem his/her profits, the AMC will reinvest the same in the mutual funds, leading to the compounding of returns.
Disclaimer: – The mutual funds schemes mentioned above (table) are not recommendations. Please do your own research and due diligence before investing in mutual funds. Investment in securities market are subject to market risk, please read all related documents carefully before investing and take decision wisely or take help from AMFI registered mutual funds distributor or SEBI registered investment advisor. There is not assurance or guarantee that the investment objective shall be achieved. Past performance of securities is not indicative of their future performance.
