One of the best things about mutual funds is that you can get started with very small amounts. Just consider the amount of money need to get started with investing:

  • Real Estate: ~5L
  • Stocks directly: ~1L (if you want to diversify well across stocks)
  • Gold: ~3K (for one gram Gold)

However, mutual funds allow you to invest with as low as Rs 500! There are no other means to diversify your investments with such small amounts.

Best Mutual Funds to Invest

As I keep mentioning in all articles – “best mutual funds” can be the best only in the hindsight. It is impossible to predict what mutual funds are going to be best in the future. The best we can do is make an informed decision and review it every year. So with this in mind, let me try to list down some mutual funds that one can get started with small amounts

Start investing with Rs 500

If you are just getting started – balanced mutual funds are the best way to start as they diversify across equity and debt. Here is one portfolio you can consider

best mutual funds to invest with 500

It has just one balanced fund. From the portfolio description:

Purpose: A single mutual fund portfolio with the lowest minimum. One can get started with just Rs 500.

Ideal for: Students or first-time investors

Ideal investment duration: 3yr+

Rationale: Wanted to keep it the lowest minimum possible. Since this portfolio contains only one fund, it has a Balanced fund to provide good diversification across debt and equity – this will enable students or first-time investors to learn about both kind of assets. DSP BlackRock Balanced Fund is one of the best funds in the Balanced category.

If you need more choice to invest with Rs 500, check this one of the most read posts – Mutual Funds With Rs 500

Investing for long term with Rs 1000

For long term investing, one can invest in the best equity funds. The mutual fund portfolio below invests in two high-quality mutual funds with a total minimum of Rs 1000.

mutual funds to invest rs 1000

Portfolio description:

Purpose: Invest in ‘SIPs of Rs 1000 for 20 Years’ if you want to invest very small amount per month. This portfolio diversifies your investment across two high-quality equity funds for good long term return.

Ideal way of investing: SIP (systematic investment plan)

Ideal investment duration: 10+ years

Rationale: Since this investment is long term (10+ years), it is primarily an equity portfolio. Diversified across Mid Cap and Large Cap. L&T Value Fund as it invests in low valued companies. Mirae Asset India Opportunities for Large Cap because it has beaten the benchmark significantly.

Here is another article that has more options for you to invest with just Rs 1000 – Best Mutual Funds with Rs 1000.

Start investing with Rs 2000

If your limit is slightly higher, here is one portfolio that diversifies across 4 different categories of mutual funds. Best performing mutual funds from respective categories are chosen to invest in this portfolio.

mutual funds to invest rs 2000

Here are more details about this mutual fund portfolio:

Purpose: Invest in ‘Start Investing with Rs 2000’, if you are just starting to invest and want to test the waters with small amounts. A well diversified portfolio with just Rs 2000.

Ideal way of investing: SIP (systematic investment plan)

Ideal investment duration: 10+ years

Rationale: Since this investment is long term (10+ years), it is an all equity portfolio. Diversified across Small & Mid Cap, Multi Cap, Large Cap and Balanced fund with Min SIP of 500. Selected DSP Small and Midcap Fund as it’s managed by Vinit Sambre (The best manager for Small and Mid cap). Kotak Select Focus for multi-cap because it has the most consistent track record. Quantum Long Term Equity for Large Cap because it has lowest expense ratio in the category. In large caps, there is no significant difference in fund returns. For Balanced fund, we chose Franklin India Balanced Fund because of its good risk-adjusted returns.

Moderate risk portfolio with Rs 3000

One of the most asked questions on our support is “Where can I invest with moderate risk and small amounts”. And this portfolio is the answer – mutual funds to invest with Rs 3000 – it has two large cap funds and one debt fund – keeping it at a very moderate risk.

mutual funds to invest rs 3000

More details on this portfolio:

Purpose: To generate healthy returns with moderate risk

Summary: The portfolio contains 3 scheme where includes 2 large cap scheme and 1 debt scheme to reduce risk and has generate risk-adjusted returns across time periods (1 year, 3year, 5 year).

Summary

In this article, we listed down 4 options you can get started investing in mutual funds. As mentioned earlier, there are no best mutual funds to invest – all you can do is find our good mutual funds based on your objective.

best mutual funds with low min

Happy Investing!