Best Mutual Funds To Invest With ₹500

08 April 2025
2 min read
Best Mutual Funds To Invest With ₹500
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SIPs in mutual funds are one of the best ways to invest for several reasons. One of the key advantages is that there is no cap on the investment amount; you can start with as little as ₹500. 

This makes SIPs an ideal option for beginners and those who want to invest consistently without a hefty initial commitment. Let’s look at some of the best mutual funds to invest with ₹500 based on 3-Y annualised returns. 

Top Mutual Funds To Invest With ₹500 

Here are some of the top-performing mutual funds where you can invest with as less as ₹500 based on their 3-year annualised returns -

Fund Name

Category

3 years Annualised Returns

SBI PSU Direct Plan Growth

Equity/Thematic

32.37%

Invesco India PSU Equity Fund Direct Growth

Equity/Thematic

30.78%

Motilal Oswal Midcap Fund Direct Growth

Equity

29.69%

Franklin Build India Direct Fund Growth

Equity

29.00%

Franklin India Opportunities Direct Fund Growth

Equity

28.63%

Overview of the Top Mutual Funds to Invest With ₹500

SBI PSU Direct Plan Growth

  • 3-Y annualised returns: 32.37%
  • AUM: ₹4,149.45Cr
  • Expense Ratio: 0.95%
  • Asset Allocation
    • Equity: 94.1%
    • Cash: 5.8%
    • Debt: 0.1%

Invesco India PSU Equity Fund Direct Growth

  • 3-Y annualised returns: 30.78%
  • AUM: ₹1,046.74Cr
  • Expense Ratio: 0.94%
  • Asset Allocation
    • Equity: 99.0%
    • Cash: 1.1%

Motilal Oswal Midcap Fund Direct Growth

  • 3-Y annualised returns: 29.69%
  • AUM: ₹23,703.68Cr
  • Expense Ratio: 0.68%
  • Asset Allocation
    • Equity: 71.1%
    • Cash: 18.8%
    • Debt: 9.6%

Franklin Build India Direct Fund Growth

  • 3-Y annualised returns: 29.00%
  • AUM: ₹1,982.52Cr
  • Expense Ratio: 0.12%
  • Asset Allocation
    • Equity: 99.3%
    • Cash: 0.7%

Franklin India Opportunities Direct Fund Growth

  • 3-Y annualised returns: 29.25%
  • AUM: ₹1,982.52Cr
  • Expense Ratio: 0.12%
  • Asset Allocation
    • Equity: 99.3%
    • Cash: 0.7%

Conclusion 

Investing in mutual funds with as little as Rs 500 is feasible and a great way to start your investment journey. Consistent investing, compounded over time, can help you grow your wealth over time. 

Mutual Funds Selection Criteria for Top Mutual Funds Listed Above

These mutual funds are listed based on the 3-year annualised returns. The selection is arranged in descending order. It is important to note that 3-year returns in no way guarantees a mutual fund’s performance. However, it can be used as a criterion for shortlisting mutual funds from within a category. Investors should recognise that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This mutual fund selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to invest in any mutual funds by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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