We all wish that we had more money to start saving. But we all have responsibilities, and surprises our way and stop us from our goal. But we can start saving today onwards by using SIPs (Systematic Investment Plans). It makes it possible for anyone, even a college student or someone in their very first job, to start building a better future. And you don’t need to be rich. Just ₹500 a month is enough to take the first step toward something bigger, something yours.
You don’t need a finance degree or Warren Buffett’s” knowledge to start. Just a little consistency, patience, and the right SIPs tailored for beginners. Even a remote job college student can begin their saving journey.
In this blog post, we’ll understand and learn the best SIPs for beginners in India, which help you understand how they work, and suggest funds you can confidently start your investment journey.
Table of Contents
What is an SIP? (For the absolute beginners)
SIP is like setting up an EMI for your future wealth, but instead of paying for a gadget or furniture, you’re investing in mutual funds.
Think of SIPs as planting a money tree. You water it monthly (₹500 is enough to start), give it sunlight (time and consistency), and watch it grow into something beautiful (hopefully, not a bonsai).
Why SIPs for Beginners Are Perfect
Let’s say you’re a 24-year-old working in Gurgaon, Mumbai, or Bangalore, trying to manage rent, Swiggy bills, and maybe a Netflix subscription. You might think investing is only for rich uncles. But here’s the truth:
SIPs are beginner-friendly because:
- Low entry point (Start with ₹500)
- Disciplined investing (auto-debit each month, zero effort)
- Rupee cost averaging (you buy more units when the market is low)
- Power of compounding (magic over time)
Top 5 Best SIPs for Beginners in India (Starting ₹500)
Here’s a curated list of SIPs that tick all the right boxes for first-time investors: low risk, good returns history, trustworthy fund houses, and ease of access.
1. Axis Bluechip Fund – Direct Plan – Growth
Type: Large Cap Equity Fund
Minimum SIP: ₹500
Returns (5 Years Avg.): Approx 13% annually
Why it’s great for beginners:
- Invests in big, stable companies (like HDFC, Infosys, Reliance, etc).
- Ideal for those who want to take little risk.
- Axis Mutual Fund is the one that is responsible for handling this fund.
Imagine this fund as the “Thali” at your favorite restaurant, it is safe, filling, and you know exactly what you’re getting.
2. Parag Parikh Flexi Cap Fund
Type: Flexi Cap Fund (Invests in large, mid & small cap + international)
Minimum SIP: ₹500
Returns (5 Years Avg.): ~16% annually
Why it’s beginner-worthy:
- Great diversification: Indian and international stocks both.
- Managed with a long-term wealth-creation mindset.
- Suitable if you’re okay with a little adventure in your investment journey.
Think of it as your investment passport—gets you exposure to US tech giants like Alphabet and Meta, along with Indian companies.
3. Nippon India Small Cap Fund – Direct Plan – Growth
Type: Small Cap Fund
Minimum SIP: ₹500
Returns (5 Years Avg.): ~23% annually
Good for:
- Slightly risk-taking beginners who want higher returns.
- Long-term (7+ years) investors.
Caution: This one’s like a spicy food challenge, you’ll love it in the long run, but it might give you a few jitters in the short term.
4. ICICI Prudential Balanced Advantage Fund
Type: Dynamic Asset Allocation/Hybrid
Minimum SIP: ₹500
Returns (5 Years Avg.): ~11% annually
Why it suits beginners:
- Lower volatility (mix of equity and debt).
- A fund manager dynamically shifts asset allocation based on market conditions.
- Great if you’re scared of market swings.
This fund is the financial version of a seatbelt. it keeps you safe when markets go up and down.
5. SBI Equity Hybrid Fund
Type: Hybrid Fund (65% equity + 35% debt)
Minimum SIP: ₹500
Returns (5 Years Avg.): ~10% annually
Beginner Bonus:
- Less risky than pure equity funds.
- Managed by SBI—India’s trusted banking name.
Think of this as your training wheels; it gives you the equity experience with extra safety nets.
How to Choose the Right SIP for You
Choosing a SIP isn’t like swiping on a dating app (though let’s be honest, both require a bit of luck). Here’s how to narrow it down:
Ask yourself:
- What’s your risk appetite? (Play safe or YOLO?)
- How long can you stay invested? (Minimum 5 years is ideal)
- Do you prefer stable returns or high growth potential?
- Do you want to invest monthly without monitoring or keep an eye?
Pro Tip:
Start with 2 SIPs – one from a low-risk hybrid fund and one from a large or flexi-cap fund. That gives you both safety and growth.
How to Start a SIP in India (Even If You’ve Never Invested Before)
Let me tell you about my friend Ramesh, a chai-lover from Delhi who had no idea what SIPs were. He thought “mutual fund sahi hai” was just another jingle. Then one day, his cousin made ₹1.5 lakhs in 3 years from just ₹1000/month. That lit the fire.
Now Ramesh invests in two SIPs, checks them once every 6 months, and sleeps like a baby.
Here’s how you can be like Ramesh:
- Choose a platform:
- Groww, Zerodha Coin, Paytm Money, Kuvera, or directly through AMC websites.
- Complete KYC:
- PAN card, Aadhaar, bank account, and a selfie (yes, even your Monday face).
- Pick the fund:
- Use filters like returns, risk level, and fund house.
- Set SIP amount:
- Minimum ₹500/month. Auto-debit is your friend.
- Sit back and relax:
- Check your portfolio once in a while—not every morning with your chai.
Common Mistakes Beginners Make (and How to Avoid Them)
- Stopping SIPs during market dips – That’s when you should continue or even invest more!
- Expecting results in 6 months – SIPs are slow cookers, not Maggi noodles.
- Investing in too many funds – Stick to 2-3, not 10.
- Ignoring goals – Know why you’re investing (car, home, marriage, early retirement, etc.)
Summary
There’s a saying—“The best time to plant a tree was 20 years ago. The second-best time is today.”
So, whether you’re a college student in Chennai, a sales executive in Jaipur, or a work-from-home pro in Indore, SIPs can work for you. Start with ₹500. Stay consistent. Watch it grow.
And remember, don’t wait to have more money to start investing. Start investing to have more money.
