Best SIP Plans for 1000 Per Month

Starting investing is crucial for beginners, especially if stock market uncertainties are a concern. Start with a small amount and seize opportunities as trust builds. Mutual funds should be the primary choice for newcomers. An examination of performance revealed that around 23 equities mutual funds had provided returns of more than 60% in the previous year. Approximately 249 equity mutual funds have completed a year of market participation.

Start small, gain confidence, and explore additional investment avenues as opportunities arise. The key is to start small, gain confidence, and continue investing despite limited experience.
 

What is a SIP

A Systematic Investment Plan (SIP) is a mutual fund investment strategy in which participants invest predetermined sums at regular periods (for example, monthly or quarterly). Investing using SIPs promotes disciplined investing by automating savings and investment activities. It enables investors to engage in the financial markets without having to timing the market.

SIPs provide flexibility in investment by allowing for alterations in contribution amounts as well as the ability to halt or terminate investments as required. SIPs allow you to diversify your investments across many assets, producing wealth over time with small and regular sums.
 

 

Best SIP Plans for 1,000 Per Month

Here is a compiled list of best SIP plans for 1,000 per month. Let’s take a look at them before making any investment:

SIP Plan Name

NAV in Rs

Fund Size in Rs 

5-Year Return in %

HDFC Life- Discovery Fund29.413,02021.9
HDFC Life - Opportunities Fund59.2331,393 Cr16.60
Kotak Life – Frontline Equity Fund52.722,317 Cr16.30
Bajaj Life – Accelerator Mid-cap Fund II64.825,017 Cr15
Bajaj Life – Pure Stock Fund64.825,250 Cr14.70
Quant Active Fund567.336,060 Cr20.55
Parag Parikh Flexi Cap Fund67.0144,038 Cr19.83
Quant Focused Fund74.94417 Cr17.76
Edelweiss Large & Mid Cap Fund75.172,221 Cr16.34
Kotak Equity Opportunities Fund284.9415,261 Cr17.03

Disclaimer: All the information mentioned above is accurate as of 26th June 2024. However, it is important to conduct research before making any investment decisions in these SIPs. 
 

Details of Best SIP Plans for 1000 per Month

Below is  detail overview of best SIP Plans for 1000 per month, take a thorough look over them prior investment in any SIP:

HDFC Life- Discovery Fund

HDFC Life-Discovery Fund offered by HDFC Life Insurance Company is a unit-linked insurance plan (ULIP) designed to provide a combination of insurance coverage and investment growth. 

  • The fund allows up to 25% investment in stocks outside the mid-cap index range.
  • Benchmark Index: Nifty Midcap 100
  • The minimum investment is Rs 1000 per month
  • Asset Holdings: Equity (94.48%) and Deposits, Money Market Instruments, and Net Current Assets (5.52%)

HDFC Life - Opportunities Fund

HDFC Life Opportunities Fund offered by HDFC Life aims to provide a platform in diverse sectors and industries.

  • The fund allows up to 20% investment in money market instruments/cash.
  • Benchmark Index: Nifty MidCap 100
  • The minimum investment is Rs 1000 per month
  • Asset Holdings: Equity (97.48%) and Deposits, Money Market Instruments, and Net Current Assets (2.52%)

Kotak Life – Frontline Equity Fund

Kotak Life Frontline Equity Fund is a mutual fund offered by Kotak Mahindra Life Insurance. It is an equity-oriented fund aiming for long-term capital appreciation by investing primarily in a diversified portfolio of stocks across sectors. The fund follows a frontline stock selection approach, focusing on established companies with strong growth potential.

  • Benchmark Index: BSE 100 (100%)
  • The minimum investment is Rs 1000 per month
  • Asset Holdings: Equity (96.04%) and Deposits, Money Market Instruments, and Net Current Assets (3.96%)

Bajaj Life – Accelerator Mid-cap Fund II 

Bajaj Life Accelerator Mid-cap Fund II offered by Bajaj Life focuses on mid-cap stocks. It aims to provide investors with accelerated growth opportunities. The fund is designed to capitalise the potential of mid-sized companies, offering a balanced investment approach for those seeking growth in their portfolio.

  • The minimum investment is Rs 1000 per month
  • Benchmark Index: Nifty Midcap 50 Index
  • Asset Holdings: Equities (90%), and Debt (10%)

Bajaj Life – Pure Stock Fund

Bajaj Life - Pure Stock Fund offered by Bajaj Life, focuses on pure stock market exposure. The fund primarily invests in stocks, providing a straightforward and targeted approach for those seeking stock-related investment opportunities.

  • Benchmark Index: S&P BSE 500 Index.
  • The minimum investment is Rs 1000 per month
  • Asset Holdings: Equity (95.94%) and Debt (4.06%)

Quant Active Fund

A Quant Active Fund utilises quantitative models to actively manage its portfolio. It depends on algorithmic strategies and data analysis to make investment decisions. This type of fund usually employs advanced computer-based techniques to identify trading opportunities and manage risk 

  • Benchmark Index: Nifty 500 Multicap 50:25:25 Total Return Index
  • The minimum investment is Rs 1000 per month
  • Asset Holdings: Equity (97.4%), Debt (2.6%)

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund offers flexibility to invest across market capitalizations and allows fund managers to adapt to market dynamics. 

  • Benchmark Index: NIFTY 500 TRI 
  • The minimum investment is Rs 1000 
  • Asset Holdings: Domestic equity (84.24%) and Debt (14.44%)

Quant Focused Fund

A Quant Focused Fund is an investment fund that employs quantitative (quant) strategies to analyse and make investment decisions. This strategy depend on data-driven insights and computer algorithms to identify potential investment opportunities

  • Benchmark Index: NIFTY 50 Total Return Index
  • The minimum investment is Rs 1000
  • Asset Holdings: Equity (90.4%), Debt and Money Market (5.71%)

Edelweiss Large & Mid Cap Fund

The Edelweiss Large & Mid Cap Fund managed Edelweiss Asset Management Limited focuses on a combination of large and mid-sized companies. It aims to provide investors with a balanced portfolio, capturing growth opportunities from both established large-cap companies and emerging mid-cap firms. 

  • Benchmark Index: S&P BSE Large & Midcap 500 Index
  • The minimum investment is Rs 500
  • Asset Holdings: Domestic equities (98.77%) and Debt (1.04%)

Kotak Equity Opportunities Fund

The Kotak Equity Opportunities Fund managed by Kotak Mahindra Asset Management company aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities.

  • Benchmark Index: Nifty Large Midcap 250 TRI
  • The minimum investment is Rs 500
  • Asset Holdings: Equity (96.06%) and Debt (0.48%)
     

Factors To Consider Before Investing in Funds With Rs. 1000 Minimum SIP 

Here are some important factors to consider while investing in fund with Rs.1000 Minimum SIP:

  1. Your Risk Appetite: The amount you invest will be determined by the level of risk you are willing to accept and the amount of money you can afford to lose.
  2. Your Investment Goals and Horizon: If you want to earn income on your assets and make regular contributions, a programme with a minimum subscription of Rs. 1000 may not be suitable for you. 
  3. Performance of Scheme: If you are unsure if a programme will satisfy your requirements or expectations, you should analyse its performance before investing in it.
  4. Fund House Credentials: With so many financial institutions offering SIPs, it's important to thoroughly study each one. In addition, you should confirm that the SIP can give you a reasonable return on investment and that it has been in place long enough to provide stability.
  5. Expenses: When evaluating if a SIP is right for you, you must evaluate these fees. If the charge is very high, this fund may not be worth investing.
     

When Should You Start the SIP?

The trick here is that there is no right or wrong moment to start a SIP. If you're concerned about the market's all-time high and the likelihood of a drop resulting in losses, ask yourself a critical question: Is your SIP meant for a short period, such as 2-3 months? The most likely response is no. This means that you started the SIP with a long-term plan, maybe extending 3-5 years. In such circumstances, look to the benefits listed above to have a better grasp of the advantages that accumulate over time.
 

Benefits of Investing in Mutual Funds Through SIP

Here are some of the benefits of investing in mutual funds through SIP:

  1. Rupee Cost Averaging: SIP enables investors to spread out their investment costs over time by buying more units at low prices and fewer units at high prices. Lower average costs per unit might result from this method, which is advantageous in erratic markets.
  2. Power of Compounding: Over time, extra profits are produced by reinvested returns from SIP investments. The compounding effect is the name given to this occurrence. Disciplined investment through SIP may greatly increase wealth over extended periods of time, say five or ten years, to help achieve long-term objectives.
  3. Freedom and Convenience: SIPs give investors the freedom to start investing with a small sum in mutual funds and to change their mind at any time by increasing or decreasing their investment amount. SIPs make investing easier by providing the convenience of recurring withdrawals from a bank account.
  4. Risk management and diversification: By spreading your investment among a number of different assets, mutual fund SIPs lower the risk associated with making a single stock or industry investment. This strategy aids in successfully reducing risk. 
     

Conclusion
When choosing a SIP plan for a ₹1,000 monthly commitment, a number of criteria need to be carefully taken into account. The SIP plans that have been featured provide investors options that correspond with certain financial objectives. SIPs' methodical approach offers well-informed investors a way to reach their long-term financial goals. In order to make adjustments to investments for long-term success, investors must do extensive study and take expert advice into account with a reliable stock market app.

FAQs on SIP Plan for Rs.1000

Choose a mutual fund, complete KYC formalities, and set up a SIP with your bank or mutual fund house through online or offline methods.

No, SIPs are subject to market risks as they invest in mutual funds. However, they can mitigate risks through regular investing and diversification.

Yes, you can increase your SIP amount anytime by submitting a request to your mutual fund house or through your online investment platform.

The ideal duration depends on your financial goals, but longer durations (5-10 years or more) generally yield better returns due to compounding.

Yes, you can redeem your SIP investments anytime. However, it's advisable to stay invested for the long term to maximise returns and achieve your financial goals.