How to Save Money by Investing in SIP?

Updated on October 1, 2025 , 16934 views

How to save money? This is the most common question that has kept people curious over the years. As a matter of fact, the most difficult part about saving money is getting started. It gets hard for people to determine simple plans to invest money and how to start saving in those plans to meet their Financial goals. If you are in a similar situation, you must consider some money savings tips and then make your decision.

How to Save Money Every Month?

You do not need to have huge sums of money to start Investing. There are other simpler ways for you.

Invest in SIP. SIP or a Systematic Investment plan is one of the best ways of investing your money.
SIP is a one-time investment option with which you can invest monthly to earn good returns on your investment.
The minimum amount of investing in a SIP is as less as INR 500, which makes it one of the most convenient investment options for even a youngster.

How to Save Money Via a SIP?

Generally, there are certain goals according to which people start investing. Some of the basic goals are mentioned below.

1. SIP Helps in Tax Saving

As you start earning, the first thing you want to know is how to save money from tax deductions. Though there are many Ways to Save Tax, SIP is one of the most convenient ones.

By investing through SIP the money gets deducted in regular intervals, so there is no burden of a lump sum investment.

Also, the SIP investments are liable for deductions under Section 80C of the income tax Act. So, all your questions about how to save money from Taxes have found a solution. By investing in a SIP, one can save somewhere between INR 15,000 to INR 45,000 in taxes per year.

2. SIP helps in Child's Education

Since the birth of your children, you should start planning for their future, that includes education, marriage etc. But how to save money for making investments is your question, right? The solution is simple and quite convenient.

invest in Mutual Funds through SIP. As you know, SIPs invest a small amount for regular intervals, it very convenient for people.

Additionally, SIPs work the best for long-term investments, that further makes it beneficial for you to save money for your child. So, don’t just linger on how to save money, just invest in a SIP and you are done.

3. SIP assists in Retirement Planning

Planning for retirement is one of the essential parts of financial goals. An appropriate Retirement planning is when you know how to save money and where to invest your savings.

There are various investing options that help you on how to save money. These plans include Provident Fund (PF), National Pension Scheme (NPS) etc.

But, one of the best money saving plans is a Systematic Investment Plan. It invests your money in growth assets and helps you create a powerful corpus for your retirement.

For example, let’s suppose you earn INR 30,000 per month at the age of 25 and invest INR 2500 per month in a SIP, increasing it by 10% every year, your savings would be the following-

Know Your Monthly SIP Amount

Total investment required is ₹7/month for 20 Years
or ₹514 one time (Lumpsum)
to achieve ₹10,000 Invest Now

At the age of 60, with the balanced return of 12% per annum, you will earn INR 4.12 crores
At the age of 60, with the balanced return of 15% per annum, you will earn INR 7.2 crores

Therefore, when deciding how to save money for your retirement, make sure you invest in SIP.

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Best SIP Funds that will Help to Save Money

Some of the best and top performing SIP funds that will help you to earn good returns from your savings are:

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
DSP US Flexible Equity Fund Growth	₹71.2539 ↓ -0.18	₹1,000	500	12.4	35.4	29.1	24.3	18.5	17.8
Franklin Asian Equity Fund Growth	₹34.3467 ↑ 0.58	₹260	500	9.6	20	12.3	14.7	5.1	14.4
ICICI Prudential Banking and Financial Services Fund Growth	₹133.56 ↑ 0.19	₹9,688	100	-1.2	9.1	6.8	16.9	21.4	11.6
Aditya Birla Sun Life Banking And Financial Services Fund Growth	₹60.53 ↑ 0.08	₹3,374	1,000	-2	8.9	4.8	17	21.5	8.7
Invesco India Growth Opportunities Fund Growth	₹100 ↑ 0.02	₹8,125	100	-1.4	14.6	4.3	25.1	23.2	37.5
Kotak Standard Multicap Fund Growth	₹84.877 ↑ 0.53	₹53,626	500	-2.1	10.7	1.7	18.2	19.3	16.5
Mirae Asset India Equity Fund Growth	₹112.699 ↑ 0.28	₹39,477	1,000	-0.9	8.7	-0.4	14	16.7	12.7
Kotak Equity Opportunities Fund Growth	₹343.007 ↑ 2.61	₹27,655	1,000	-0.4	11	-1.1	20.1	22.1	24.2
Franklin Build India Fund Growth	₹141.794 ↑ 1.03	₹2,884	500	-0.9	9.7	-1.8	29	33.7	27.8
DSP Equity Opportunities Fund Growth	₹615.617 ↑ 3.18	₹15,356	500	-1.4	6.8	-2.6	20.8	22.7	23.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Oct 25

Research Highlights & Commentary of 10 Funds showcased

Commentary	DSP US Flexible Equity Fund	Franklin Asian Equity Fund	ICICI Prudential Banking and Financial Services Fund	Aditya Birla Sun Life Banking And Financial Services Fund	Invesco India Growth Opportunities Fund	Kotak Standard Multicap Fund	Mirae Asset India Equity Fund	Kotak Equity Opportunities Fund	Franklin Build India Fund	DSP Equity Opportunities Fund
Point 1	Bottom quartile AUM (₹1,000 Cr).	Bottom quartile AUM (₹260 Cr).	Upper mid AUM (₹9,688 Cr).	Lower mid AUM (₹3,374 Cr).	Lower mid AUM (₹8,125 Cr).	Highest AUM (₹53,626 Cr).	Top quartile AUM (₹39,477 Cr).	Upper mid AUM (₹27,655 Cr).	Bottom quartile AUM (₹2,884 Cr).	Upper mid AUM (₹15,356 Cr).
Point 2	Established history (13+ yrs).	Established history (17+ yrs).	Established history (17+ yrs).	Established history (11+ yrs).	Established history (18+ yrs).	Established history (16+ yrs).	Established history (17+ yrs).	Established history (21+ yrs).	Established history (16+ yrs).	Oldest track record among peers (25 yrs).
Point 3	Top rated.	Rating: 5★ (top quartile).	Rating: 5★ (upper mid).	Rating: 5★ (upper mid).	Rating: 5★ (upper mid).	Rating: 5★ (lower mid).	Rating: 5★ (lower mid).	Rating: 5★ (bottom quartile).	Rating: 5★ (bottom quartile).	Rating: 5★ (bottom quartile).
Point 4	Risk profile: High.	Risk profile: High.	Risk profile: High.	Risk profile: High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: High.	Risk profile: Moderately High.
Point 5	5Y return: 18.49% (bottom quartile).	5Y return: 5.06% (bottom quartile).	5Y return: 21.43% (lower mid).	5Y return: 21.52% (upper mid).	5Y return: 23.16% (top quartile).	5Y return: 19.27% (lower mid).	5Y return: 16.72% (bottom quartile).	5Y return: 22.14% (upper mid).	5Y return: 33.70% (top quartile).	5Y return: 22.74% (upper mid).
Point 6	3Y return: 24.25% (upper mid).	3Y return: 14.74% (bottom quartile).	3Y return: 16.91% (bottom quartile).	3Y return: 17.02% (lower mid).	3Y return: 25.11% (top quartile).	3Y return: 18.18% (lower mid).	3Y return: 13.97% (bottom quartile).	3Y return: 20.12% (upper mid).	3Y return: 28.96% (top quartile).	3Y return: 20.76% (upper mid).
Point 7	1Y return: 29.11% (top quartile).	1Y return: 12.25% (top quartile).	1Y return: 6.83% (upper mid).	1Y return: 4.80% (upper mid).	1Y return: 4.34% (upper mid).	1Y return: 1.73% (lower mid).	1Y return: -0.44% (lower mid).	1Y return: -1.15% (bottom quartile).	1Y return: -1.77% (bottom quartile).	1Y return: -2.60% (bottom quartile).
Point 8	Alpha: -2.48 (lower mid).	Alpha: 0.00 (upper mid).	Alpha: -2.57 (bottom quartile).	Alpha: -6.06 (bottom quartile).	Alpha: 11.03 (top quartile).	Alpha: 3.91 (top quartile).	Alpha: 1.60 (upper mid).	Alpha: 0.72 (upper mid).	Alpha: 0.00 (lower mid).	Alpha: -3.26 (bottom quartile).
Point 9	Sharpe: 0.77 (top quartile).	Sharpe: 0.49 (top quartile).	Sharpe: 0.03 (upper mid).	Sharpe: -0.18 (upper mid).	Sharpe: 0.03 (upper mid).	Sharpe: -0.37 (lower mid).	Sharpe: -0.52 (bottom quartile).	Sharpe: -0.51 (lower mid).	Sharpe: -0.64 (bottom quartile).	Sharpe: -0.78 (bottom quartile).
Point 10	Information ratio: -0.62 (bottom quartile).	Information ratio: 0.00 (lower mid).	Information ratio: 0.32 (upper mid).	Information ratio: 0.14 (upper mid).	Information ratio: 1.26 (top quartile).	Information ratio: 0.19 (upper mid).	Information ratio: -0.17 (bottom quartile).	Information ratio: 0.13 (lower mid).	Information ratio: 0.00 (bottom quartile).	Information ratio: 0.46 (top quartile).

DSP US Flexible Equity Fund

Bottom quartile AUM (₹1,000 Cr).
Established history (13+ yrs).
Top rated.
Risk profile: High.
5Y return: 18.49% (bottom quartile).
3Y return: 24.25% (upper mid).
1Y return: 29.11% (top quartile).
Alpha: -2.48 (lower mid).
Sharpe: 0.77 (top quartile).
Information ratio: -0.62 (bottom quartile).

Franklin Asian Equity Fund

Bottom quartile AUM (₹260 Cr).
Established history (17+ yrs).
Rating: 5★ (top quartile).
Risk profile: High.
5Y return: 5.06% (bottom quartile).
3Y return: 14.74% (bottom quartile).
1Y return: 12.25% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: 0.49 (top quartile).
Information ratio: 0.00 (lower mid).

ICICI Prudential Banking and Financial Services Fund

Upper mid AUM (₹9,688 Cr).
Established history (17+ yrs).
Rating: 5★ (upper mid).
Risk profile: High.
5Y return: 21.43% (lower mid).
3Y return: 16.91% (bottom quartile).
1Y return: 6.83% (upper mid).
Alpha: -2.57 (bottom quartile).
Sharpe: 0.03 (upper mid).
Information ratio: 0.32 (upper mid).

Aditya Birla Sun Life Banking And Financial Services Fund

Lower mid AUM (₹3,374 Cr).
Established history (11+ yrs).
Rating: 5★ (upper mid).
Risk profile: High.
5Y return: 21.52% (upper mid).
3Y return: 17.02% (lower mid).
1Y return: 4.80% (upper mid).
Alpha: -6.06 (bottom quartile).
Sharpe: -0.18 (upper mid).
Information ratio: 0.14 (upper mid).

Invesco India Growth Opportunities Fund

Lower mid AUM (₹8,125 Cr).
Established history (18+ yrs).
Rating: 5★ (upper mid).
Risk profile: Moderately High.
5Y return: 23.16% (top quartile).
3Y return: 25.11% (top quartile).
1Y return: 4.34% (upper mid).
Alpha: 11.03 (top quartile).
Sharpe: 0.03 (upper mid).
Information ratio: 1.26 (top quartile).

Kotak Standard Multicap Fund

Highest AUM (₹53,626 Cr).
Established history (16+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.27% (lower mid).
3Y return: 18.18% (lower mid).
1Y return: 1.73% (lower mid).
Alpha: 3.91 (top quartile).
Sharpe: -0.37 (lower mid).
Information ratio: 0.19 (upper mid).

Mirae Asset India Equity Fund

Top quartile AUM (₹39,477 Cr).
Established history (17+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 16.72% (bottom quartile).
3Y return: 13.97% (bottom quartile).
1Y return: -0.44% (lower mid).
Alpha: 1.60 (upper mid).
Sharpe: -0.52 (bottom quartile).
Information ratio: -0.17 (bottom quartile).

Kotak Equity Opportunities Fund

Upper mid AUM (₹27,655 Cr).
Established history (21+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 22.14% (upper mid).
3Y return: 20.12% (upper mid).
1Y return: -1.15% (bottom quartile).
Alpha: 0.72 (upper mid).
Sharpe: -0.51 (lower mid).
Information ratio: 0.13 (lower mid).

Franklin Build India Fund

Bottom quartile AUM (₹2,884 Cr).
Established history (16+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: High.
5Y return: 33.70% (top quartile).
3Y return: 28.96% (top quartile).
1Y return: -1.77% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.64 (bottom quartile).
Information ratio: 0.00 (bottom quartile).

DSP Equity Opportunities Fund

Upper mid AUM (₹15,356 Cr).
Oldest track record among peers (25 yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 22.74% (upper mid).
3Y return: 20.76% (upper mid).
1Y return: -2.60% (bottom quartile).
Alpha: -3.26 (bottom quartile).
Sharpe: -0.78 (bottom quartile).
Information ratio: 0.46 (top quartile).

By now you know how to save money through a SIP. So, if you are also planning to save money for the above-mentioned reasons or just want to save money anyway, make a SIP investment now. Save money, live better!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.