SIP Plans for 500 Per Month

Published Apr 20, 2026 3 min read

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Introduction

Starting a Systematic Investment Plan (SIP) with just Rs. 500 per month is one of the easiest ways to begin your investment journey. SIPs allow individuals to invest small, fixed amounts regularly in mutual funds, making them ideal for both beginners and experienced investors. For new investors, it removes the pressure of investing a large sum at once, while seasoned investors can use it to diversify and maintain disciplined investing habits.

Even a modest amount like Rs. 500 can grow significantly over time due to the power of compounding. SIPs also help in achieving long-term financial goals such as retirement planning, children’s education, or wealth creation. By investing consistently, investors can benefit from market fluctuations through rupee cost averaging. This makes SIPs a practical and accessible investment option for individuals across income levels.

List of SIP plans for Rs. 500 per month

Here are some mutual fund SIP options where you can start investing with Rs. 500 per month:

HDFC Mid Cap Fund Regular-Growth
Kotak Flexicap Fund Regular-Growth
SBI Large Cap Fund-Growth
Nippon India Large Cap Fund-Growth
ICICI Prudential Value Fund-Growth
Aditya Birla Sun Life Large Cap Fund Regular-Growth

These funds belong to different categories like large cap, mid cap, and flexi cap, offering investors a variety of choices based on their risk appetite and financial goals.

Details of the SIP plan for Rs. 500 per month

SIP plans starting at Rs. 500 per month allow investors to participate in mutual funds with minimal financial commitment. These plans are flexible and can be started online with simple KYC verification. Investors can choose from equity, debt, or hybrid funds depending on their risk tolerance. Over time, consistent contributions help build wealth through compounding and market growth. Additionally, SIPs offer the flexibility to increase, decrease, or stop investments as needed. This makes them suitable for salaried individuals, students, and first-time investors looking to begin small.

SIP plan overviews

HDFC Mid Cap Fund Regular-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
HDFC Mid Cap Fund Regular-Growth	High	Mid Cap	Strong long-term returns driven by mid-sized companies; suitable for long-term investors	Moderate

This fund focuses on mid-sized companies with high growth potential. It is suitable for investors willing to take higher risk for better returns over the long term.

Kotak Flexicap Fund Regular-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
Kotak Flexicap Fund Regular-Growth	Moderate to High	Flexi Cap	Consistent performance across market cycles due to diversified allocation	Moderate

This fund invests across large, mid, and small-cap stocks, offering flexibility and diversification. It is suitable for investors seeking balanced exposure.

SBI Large Cap Fund-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
SBI Large Cap Fund-Growth	Moderate	Large Cap	Stable returns with lower volatility compared to mid and small cap funds	Low to Moderate

This fund invests in well-established companies, making it suitable for conservative investors seeking steady growth.

Nippon India Large Cap Fund-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
Nippon India Large Cap Fund-Growth	Moderate	Large Cap	Consistent performance with focus on top-performing large companies	Moderate

It offers exposure to strong, established companies and is suitable for investors looking for relatively stable returns.

ICICI Prudential Value Fund-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
ICICI Prudential Value Fund-Growth	Moderate to High	Value Fund	Focuses on undervalued stocks with long-term growth potential	Moderate

This fund follows a value investing strategy and is ideal for investors with a long-term horizon.

Aditya Birla Sun Life Large Cap Fund Regular-Growth

Fund Name	Risk Level	Category	Past Performance	Expense Ratio
Aditya Birla Sun Life Large Cap Fund Regular-Growth	Moderate	Large Cap	Consistent returns with focus on top-tier companies	Moderate

This fund invests in leading companies, offering stability and steady returns over time.

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How does SIP plans for Rs. 500 per month work?

SIP plans for Rs. 500 per month work by allowing investors to invest a fixed amount at regular intervals, usually monthly, into a mutual fund scheme. The amount is automatically debited from the investor’s bank account and used to purchase units of the chosen fund based on its current net asset value (NAV). Over time, investors accumulate more units when prices are low and fewer when prices are high, a concept known as rupee cost averaging.

The invested amount benefits from compounding as returns generated are reinvested. SIPs also provide flexibility, allowing investors to increase, pause, or stop their contributions based on their financial situation.

How it works in simple terms

Choose a mutual fund that allows a minimum SIP of Rs. 500
Complete account setup and eKYC online
Start SIP by linking your bank account for auto-debit
Invest Rs. 500 every month on a fixed date
Units are allocated based on the fund’s NAV
Track your investment performance through the platform
Modify SIP amount or switch funds if needed
Continue investing regularly to benefit from compounding

Conclusion

Starting a SIP with Rs. 500 per month is a simple yet powerful way to begin investing. It removes the need for a large initial investment and promotes disciplined financial habits. Over time, even small contributions can grow into a substantial corpus through compounding. SIPs are flexible, easy to manage, and suitable for achieving various financial goals like retirement, education, or wealth creation. Whether you are a beginner or an experienced investor, starting small can be the first step toward building long-term financial security.

Frequently asked questions

Which SIP is best for Rs. 500 per month?

Funds like HDFC Mid Cap Fund Regular-Growth and SBI Large Cap Fund-Growth are popular choices, depending on your risk appetite and investment goals.

Can I really start an SIP with just Rs. 500 per month?

Yes, many mutual funds allow SIP investments starting at Rs. 500, making it accessible for beginners and those with limited budgets.

Can I change my SIP amount or stop it midway?

Yes, SIPs offer flexibility. You can increase, decrease, pause, or stop your SIP anytime through your investment platform.

How to double Rs. 500?

Invest Rs. 500 regularly in market-linked options like mutual funds or long-term plans such as PPF to benefit from compounding and steady returns over time.

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Disclaimer

Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

Disclaimer

Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319

BFL does NOT:

(i) provide investment advisory services in any manner or form.

(ii) carry customized/personalized suitability assessment.

(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.

In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.

Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.

Disclaimer on Risk-O-Meter:

Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.

Disclosure: Bajaj Finance Limited (BFL) is a distributor of Mutual Funds with ARN - 90319 and distributes mutual funds of Bajaj Finserv Asset Management Limited (BFSAMC). BFL receives commission towards distribution of mutual fund products. BFSAMC is a group company of BFL, carrying business on arm’s length basis without any conflict of interest and in accordance with the prevailing law / regulation.

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Introduction

List of SIP plans for Rs. 500 per month

Details of the SIP plan for Rs. 500 per month