2 High Rated Equity SIPs You Can Start For Just Rs. 500

The prime objective to start a mutual fund SIP is to engage in systematic and disciplined investing. Here month on month you commit some amount towards a scheme in order to build a substantial corpus over a period of time that can help you meet your long term goals. Likewise, in a scenario, when the markets are bottoming, taking the SIP investment route, you can get more number of units and on regular investments you will be able to average your purchase cost and hence maximise your returns.

2 High Rated Equity SIPs You Can Start For Just Rs. 500

So, here are the 2 funds you can consider for your portfolio if you are looking to start small:

1. Axis Small Cap Fund:

For aggressive bets and to reap a higher return at the same time, high risk-appetite investors can start a SIP for a minimum sum of Rs. 500 in this Axis Mutual Fund's scheme. This is a pretty old fund benchmarked to Nifty Small Cap 250 TRI. The fund's return since launch are at a good 23.75%. As of May 31, 2022, the AUM of the fund are at Rs. 8984 crore and the expense ratio is 0.48%.

The scheme's holdings as the name suggests are more small cap centric i.e. over 58% of the corpus is allocated into small cap stocks. Some of the top holdings of the fund are Galaxy Surfactants, Fine Organic, Brigade Enterprises, Narayana Hrudayalaya, Krishna Institute, Birlasoft, CCL Products, RHI Magnesita, Blue Star and JK Lakshmi Cement among others.

This SIP is Value Research 5-Star rated and CRISIL 3-Star rated. 5-year SIP returns from the fund is at 21.45% and Rs. 10000 monthly SIP started 5 years ago is now worth Rs. 10.54 lakh under the direct plan.

2. UTI Flexi cap fund:

If you wish to be flexible in your allocation across companies i.e. are hunting for a fund where there is no mandate as to allocation to a specific m-cap say as in multi-cap funds where necessarily minimum 25% of the fund is to be allocated across small-cap, mid-cap and large-cap each, you can go for the flexible fund. And within that space, if you are looking for the fund in which you can start a SIP for just Rs. 500 per month then you can go for UTI Flexi cap fund. This fund is rated 3-star by CRISIL and 4-Star by Value Research. For the direct plan, the fund's NAV is at Rs. 224.74. Further the fund size of the scheme is substantial at Rs.23,608.88 crore. Expense ratio is 0.95%.

The fund has large scale allocation to large-cap and mid-cap stocks to the tune of 43% and 24%, respectively, while allocation to small-cap is over 10%.

The fund's top holdings are Bajaj Finance, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Infosys,L&T, Avenue Supermarts, HDFC, Infoedge etc.

SIP 5-year annualsed return is at 13.17% and the Rs. 10000 monthly SIP in 5-years is now worth Rs. 8.26 lakh.

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