Which SIP is the Best for Rs. 1000 Per Month?

SIPs are excellent for investing in markets as they provide a small budget and high profits. These schemes pool the funds from many investors and use the money to buy stock. Depending on your risk appetite and investing goals, you can start investing with just Rs. 1000 monthly. 

This article will look at the best SIP to invest in for Rs. 1000. 

So, let’s get started!

What is the the Best SIP to Invest in with Rs. 1000 Per Month?

Nippon India Value Fund for SIP

Nippon India Value Fund is the top contender for the best SIP to invest in. It aims to give investors stable returns and financial growth. The fund’s holdings comprise value equities across various sectors and market caps. Its portfolio includes healthcare, technology, consumer services, and financial investments.

The fund’s information ratio is the highest of any comparable offering. The information ratio is a metric used to evaluate a portfolio manager’s performance. It has shown very positive returns over time, outperforming inflation.

Fund Details

• Smallest SIP Amount: Rs. 500
• Smallest Lump Sum: Rs. 500
• 3-Year Return: 22.47%
• 5-Year Return: 13.55%
• Expense Ratio: 1.98%
• Benchmark: IISL Nifty 500 TR INR
• Risk Level: Very High Risk
• AMC: Nippon Mutual Funds

Franklin India Feeder Franklin US Opportunities Fund for SIP

Franklin India Feeder Franklin US Opportunities Fund is an international FOF (Fund of Funds). It is among the top 5 best SIP to invest in. A broad range of market capitalizations and economic sectors are targeted for investment. Indian investors may access the US market by purchasing shares in the fund. These funds are best for long-term investments.

This fund stands out with the highest AUM (assets under management) among its competitors. If you look at the fund’s performance over time, you can see that it has done well. The fund outperformed its category average by the largest margin throughout the quarter. The fund offers to invest in sectors not located in India at the moment and offers geographical diversity as well. Over time, the scheme’s effectiveness has been consistent. The fund also offers competitive returns, which are higher than its benchmark.

Fund Details

• Smallest SIP Amount: Rs. 500
• Smallest Lump Sum: Rs. 5,000
• 3-Year Return: 20.93%
• 5-Year Return: 11.89%
• Expense Ratio: 1.56%
• Benchmark: Russell 3000 Growth TR USD
• Risk Level: Very High-Risk
• AMC: Franklin Mutual Funds

Canara Robeco Emerging Equities Fund for SIP

This fund is among the best SIP to invest in. There is a wide set of big plus mid-cap companies within the Canara Robeco Emerging Equities Fund. Compared to large-cap mutual funds, the returns from a diversified portfolio are higher. 

This fund starts at the bottom when choosing companies to invest in. This fund generates steady returns because of many factors.

Fund Details

• Smallest SIP Amount: Rs. 500
• Smallest Lump Sum: Rs. 5,000
• 3-Year Return: 22.35%
• 5-Year Return: 14.12%
• Expense Ratio: 1.84%
• Benchmark: IISL Nifty Largecap 250 TR INR
• Risk Level: Very High Risk
• AMC: Canara Robeco Mutual Funds

Canara Robeco Bluechip Equity Fund for SIP

The Canara Bluechip Fund’s investments are in large-cap firms for short and long-term returns. This fund is best suited for long-term investors. This fund has produced above-inflation returns during its entire twelve-year lifetime. The fund’s AUM is in the top 10 in its peer group.

Fund Details

• Smallest SIP Amount: Rs. 1,000
• Smallest Lump Sum: Rs. 5,000
• 3-Year Return: 18.93%
• 5-Year Return: 15.99%
• Expense Ratio: 1.90%
• Benchmark: S&P BSE 100 India TR INR
• Risk Level: Very High Risk
• AMC: Canara Robeco Mutual Funds

Nippon India Arbitrage Fund for SIP

The Nippon India Arbitrage Fund finances potential arbitrage situations. Through cash-market and derivatives-market arbitrage, the plan seeks to make money. If you’re looking for somewhere to park your spare cash for the near future, this is the fund for you. 

Arbitrage funds make a profit by exploiting price differences between two different markets. This strategy buys cash assets at a discount. Then, they are sold at futures for a profit. The gain from arbitrage is equal to the price differential. Market volatility is ideal for arbitrage funds.

Arbitrage funds benefit when cash and derivative markets have a discrepancy in pricing. Additionally, they generate new capital via purchases of prime liquid debt instruments.

Fund Details

• Smallest SIP Amount: Rs. 1,000
• Smallest Lump Sum: Rs. 5,000
• 3-Year Return: 4.66%
• 5-Year Return: 5.69%
• Expense Ratio: 1.06%
• Benchmark: NIFTY 50 Arbitrage TR INR
• Risk Level: Very High Risk
• AMC: Nippon Mutual Funds

Factors to Consider Before Getting Started in Investing with Rs. 1000

Before choosing the best SIP to invest in with Rs. 1000, here are some factors to consider:

Your Risk Appetite

Investing depends on your risk tolerance and your ability to absorb financial losses. Long-term investments could be larger and more frequent if you have a higher risk profile.

Investing Objectives and Time Frame

If you want to earn interest on your assets and contribute, a programme requiring Rs. 1,000 in subscriptions may not suit you. Investing in various plans or contributing might be a good way to supplement your income.

Scheme Performance

The scheme’s performance is another crucial factor. Before giving money, ensure that a programme meets your requirements and wants.

Fund House’s Reputation

Before choosing the best SIP to invest in, check its legitimacy with banks and other financial organizations. Moreover, ensure the SIP offers a reasonable return on investment and has been around for a long time.

Expenses

When evaluating the best SIP investment, it’s important to weigh these fees. If the expense ratio is excessively high, the fund may not be worthwhile.

Parting words

The best SIP to invest in has multiple points of interest. But scheme performance and expense ratio are the most important. The best part about SIPs is the possibility of investing with as little as Rs. 1000 per month. Having a low threshold for entry opens up the scope by default. Also, the best SIP to invest in is better than stocks or bonds for people who lack stable finances.

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