Mutual funds are one of the most convenient and simplest ways to invest your money for future growth. Moreover, you can start investing via SIP with an amount as low as Rs 500!

Here are the best funds to invest in with just Rs 500 from every mutual fund category.

1. Tax Saving ELSS Fund

IDFC Tax Advantage (ELSS) Fund

This scheme seeks to earn long-term growth by building a diversified portfolio comprising of stocks of companies with strong fundamentals that are available at reasonable valuations.

The fund has no exit load and lies in the above average return grade. It has given returns of 48.36%, 18.23% and 21.06% in 1Y, 3Y, and 5Y respectively.

IDFC Tax Advantage Fund Details

AUM Rs.897 crore
NAV Rs.56.90
Expense Ratio 2.31%
Risk Grade Below average
Return Since Launch 21%
Exit Load Nil

2. Large Cap Fund

Reliance Top 200 Fund

This scheme seeks to invest in equity or equity related instruments of companies whose market capitalization is within range of highest and lowest market capitalization of BSE 200 index.

The fund carries an exit load of 1% on redemption within 365 days and lies in the moderately high risk grade.

However, the fund has beaten its benchmark over the past 1,3, 5 and 7 year periods. It has given returns of 37.4%, 12.99% and 18.02% in 1Y, 3Y and 5Y respectively.

The fund is good for long term investment.

Reliance Top 200 Fund

AUM Rs.7,170 Cr.
NAV Rs.32.64
Expense Ratio 1.98%
Risk Grade Moderately High
Return Since Launch 11.92%
Exit Load 1% for redemption within 365 days

3. Mid Cap Fund

L&T Midcap Fund

The fund’s objective is to generate capital appreciation by investing primarily in midcap stocks.

The fund carries an exit load of 1% on redemption within 365 days and lies in the below average risk grade. It has given returns of 49.33%, 23.23%, and 28.54% in 1Y, 3Y and 5Y respectively.

L&T Midcap Fund Details

AUM Rs.2,036 Cr.
NAV Rs.141.34
Expense Ratio 2.19%
Risk Grade Below Average
Return Since Launch 21.67%
Exit Load 1% for redemption within 365 days

4. Small Cap Fund

Reliance Small Cap Fund

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

The fund carries an exit load of 1% on redemption within 365 days and lies in the above average risk grade. It has given returns of 61.67% and 25.88% in 1Y and 3Y respectively.

Reliance Small Cap Fund

AUM Rs.6,371 Cr.
NAV Rs.44.336
Expense Ratio 2%
Risk Grade Above Average
Return Since Launch 22.30%
Exit Load 1% for redemption within 365 days

5. Multi-Cap Cap Fund

DSP BlackRock Opportunities Fund

The scheme aims to generate long term capital appreciation, income and distribution of dividend by investing in equity and equity related instruments.

The fund carries an exit load of 1% on redemption within 365 days and lies in the average risk grade. It has given returns of 66.85% and 28.43% in 1Y and 3Y respectively.

DSP BlackRock Opportunities Fund

AUM Rs.4,805 Cr.
NAV Rs.217.17
Expense Ratio 2.49%
Risk Grade Average
Return Since Launch 18.95%
Exit Load 1% for redemption within 365 days

6. Sector Fund

L&T Infrastructure Fund

The scheme aims to generate capital appreciation by investing primarily in companies that are engaged in the area of infrastructure.

The fund carries an exit load of 1% on redemption within 365 days and lies in the average risk grade. It has given returns of 53.70%, 22.69% and 23.93% in 1Y, 3Y and 5Y respectively.

L&T Infrastrcuture Fund Details

AUM Rs.1,515 Cr.
NAV Rs.17.79
Expense Ratio 2.31%
Risk Grade Average
Return Since Launch 5.71%
Exit Load 1% for redemption within 365 days

7. Index Fund

UTI Nifty Fund

The scheme is an open-ended passive fund with the objective to invest in securities of companies comprising of Nifty 50.

The fund does not carry an exit load and lies in the average risk grade. It has given returns of 20.29%, 7.53% and 12.68% in 1Y, 3Y and 5Y respectively.

UTI Nifty Fund Details

AUM Rs.716 Cr.
NAV Rs.67.4466
Expense Ratio 0.20%
Risk Grade Average
Return Since Launch 11.23%
Exit Load Nil

8. Debt Fund

Indiabulls Liquid Fund

The fund seeks to provide a high level of liquidity with returns along with a low risk through a portfolio of money market and debt securities with a maturity of up to 91 days.

The fund does not carry an exit load. It has given returns of 6.70%, 7.60% and 8.21% in 1Y, 3Y and 5Y respectively.

Indiabulls Liquid Fund Facts

AUM Rs.4,541 Cr.
NAV Rs.1672.15
Expense Ratio 0.25%
Risk Grade
Return Since Launch 8.52%
Exit Load Nil

9. Balanced Fund

Tata Retirement Savings Fund Moderate Plan

The fund seeks to provide financial planning tool for long term financial security for investors based on their retirement planning goals.

The fund carries an exit load of 3% for redemption within 3 years and 1% for redemption after 3 years and lies in the average risk grade. It has given returns of 21.23%, 13.16% and 19.62% in 1Y, 3Y and 5Y respectively.

Tata Retirement Savings Fund Moderate Plan Details.

AUM Rs.502 Cr.
NAV Rs.28.89
Expense Ratio 2.71%
Risk Grade Average
Return Since Launch 18.44%
Exit Load For Redemption or switch out of units before the attainment of retirement age i.e 60 years

3% for redemption within 1095 days

1% for redemption above 1095 days

10. Gold Fund

SBI Gold Fund

The scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS).

The fund has lower risk as compared to its benchmark. It has given returns of 3.5% and 1.7%  in 1Y and 3Y respectively.

SBI Gold Fund Details

AUM Rs.390 Cr.
NAV Rs.9.79
Expense Ratio 0.43%

To see more top funds, check out: 30 Best Funds to Invest in 2018.

Happy investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.