Best Mutual Funds to Invest with ₹500

Getting started in the Indian stock market doesn’t have to be overwhelming. In fact, starting small can be one of the best ways to build long-term wealth, especially if you’re new to investing. If you’ve been looking for options like mutual funds that accept a ₹500 investment, an SIP of ₹500 per month, or simply a way to invest ₹500 monthly, you’ll be happy to know that mutual funds make this very easy. With just ₹500, you can begin your investment journey.

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In this blog, we’ll look at some of the best mutual fund options for a ₹500 investment. These mutual funds are popular among investors and have a large amount of assets under management (AUM). The fund information is as of January 9, 2026.

Overview of Best Mutual Funds to Invest with ₹500

Several top mutual funds in India accept ₹500 monthly SIPs, making them accessible for small investors seeking long-term growth through equity, hybrid, or ELSS strategies. These funds focus on diversified portfolios to balance risk and returns, ideal for beginners building wealth steadily.

Kotak Flexicap Fund

This flexicap fund invests across large, mid, and small caps for optimal growth, adapting to market shifts with a massive AUM of ₹53,293 crore. It delivers 17.85% returns and supports ₹500 SIPs, making it a favorite for versatile equity exposure. Popular for its consistent track record among retail investors.

Axis Large-Cap Fund

This large-cap fund invests in high-quality bluechip stocks for capital appreciation with relatively lower volatility. Rated highly by agencies like CRISIL, it permits ₹500 monthly SIPs after an initial ₹5,000, appealing to risk-averse investors starting small. It emphasizes solid fundamentals for long-term reliability.

Motilal Oswal Midcap Fund

Focusing on midcap companies with growth potential, this fund seeks superior returns through quality mid-sized firms. AUM exceeds ₹38,000 crore, with minimum SIP at ₹500, and it follows a “Buy Right, Sit Tight” strategy for compounding gains. Great for moderate-risk SIPs aiming higher growth.

HDFC Balanced Advantage Fund

This dynamic asset allocation fund adjusts equity-debt mix based on valuations for balanced risk-return. Popular for moderate risk, it allows low SIPs around ₹500 and features large AUM for stability. It blends growth from equities with debt safety, fitting diverse SIP portfolios.

Mirae Asset ELSS Tax Saver Fund

This ELSS fund invests primarily in equities across market caps to deliver long-term capital appreciation while offering tax deductions under Section 80C with a 3-year lock-in. It boasts an AUM of ₹27,274 crore, recent 1-year returns around 10.52%, and a low expense ratio of 0.56%, suiting disciplined SIP investors. Minimum SIP starts at ₹500, making it perfect for small monthly commitments.

ICICI Prudential ELSS Tax Saver Fund

This tax-saving ELSS scheme focuses on equity investments for wealth creation alongside Section 80C benefits and a short 3-year lock-in. Managing ₹14,959 crore AUM, it shows 1-year returns of about 9.7% with a 1.08% expense ratio. ₹500 SIP entry point supports steady tax-efficient investing.

Conclusion

Putting ₹500 into mutual funds is a practical way for Indian stock market traders to kickstart their wealth-building journey. Whether you’re eyeing an SIP of ₹500 per month for 5 years or just a mutual fund minimum investment of ₹500, the funds listed above are excellent starting points. By looking at factors like your risk comfort, fund costs, and financial goals, you can make smart choices. The calculation shows how compounding can turn small investments into big gains over time. Begin your ₹500 per month investment now and see your money grow!