How to Save Money by Investing in SIP?

Updated on September 3, 2026 , 17680 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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Fund Selection Methodology used to find 10 funds

Category: Equity
Investment Option: SIP
Sorted On : drat (high to low)
Tags: SmartSip, fcpro
No Of Funds: 10

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 (%)
Franklin Asian Equity Fund Growth	₹45.211 ↑ 0.34	₹954	500	0	20.6	42	21.4	8.3	23.7
DSP US Flexible Equity Fund Growth	₹92.216 ↑ 0.39	₹1,296	500	-3.9	17.6	36.3	25.9	17.9	33.8
Aditya Birla Sun Life Small Cap Fund Growth	₹101.636 ↑ 0.04	₹5,865	1,000	11.2	25.4	20.7	15	13.7	-3.7
DSP Natural Resources and New Energy Fund Growth	₹108.77 ↓ -0.04	₹2,441	500	-2.2	-0.9	19.9	19.4	15.4	17.5
Invesco India Growth Opportunities Fund Growth	₹110.73 ↓ -0.11	₹11,746	100	10.1	16.7	9.4	22.1	16.4	4.7
Tata India Tax Savings Fund Growth	₹47.4123 ↓ -0.07	₹4,664	500	6	6.9	9.2	12.3	11.8	4.9
SBI Small Cap Fund Growth	₹187.587 ↑ 0.21	₹39,955	500	11.1	21.2	8.7	11.7	14.2	-4.9
Aditya Birla Sun Life Banking And Financial Services Fund Growth	₹63.34 ↑ 0.18	₹3,648	1,000	7.3	2.3	7.6	10.4	10.1	17.5
Kotak Equity Opportunities Fund Growth	₹352.062 ↓ -0.14	₹32,050	1,000	5.1	2.5	4.4	13	12.5	5.6
Tata Equity PE Fund Growth	₹353.728 ↑ 0.26	₹8,492	150	5.1	3.2	4.1	12.8	13	3.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Sep 26

Research Highlights & Commentary of 10 Funds showcased

Commentary	Franklin Asian Equity Fund	DSP US Flexible Equity Fund	Aditya Birla Sun Life Small Cap Fund	DSP Natural Resources and New Energy Fund	Invesco India Growth Opportunities Fund	Tata India Tax Savings Fund	SBI Small Cap Fund	Aditya Birla Sun Life Banking And Financial Services Fund	Kotak Equity Opportunities Fund	Tata Equity PE Fund
Point 1	Bottom quartile AUM (₹954 Cr).	Bottom quartile AUM (₹1,296 Cr).	Upper mid AUM (₹5,865 Cr).	Bottom quartile AUM (₹2,441 Cr).	Upper mid AUM (₹11,746 Cr).	Lower mid AUM (₹4,664 Cr).	Highest AUM (₹39,955 Cr).	Lower mid AUM (₹3,648 Cr).	Top quartile AUM (₹32,050 Cr).	Upper mid AUM (₹8,492 Cr).
Point 2	Established history (18+ yrs).	Established history (14+ yrs).	Established history (19+ yrs).	Established history (18+ yrs).	Established history (19+ yrs).	Established history (11+ yrs).	Established history (17+ yrs).	Established history (12+ yrs).	Oldest track record among peers (22 yrs).	Established history (22+ 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: Moderately High.	Risk profile: High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 8.28% (bottom quartile).	5Y return: 17.94% (top quartile).	5Y return: 13.67% (upper mid).	5Y return: 15.37% (upper mid).	5Y return: 16.36% (top quartile).	5Y return: 11.77% (bottom quartile).	5Y return: 14.17% (upper mid).	5Y return: 10.07% (bottom quartile).	5Y return: 12.53% (lower mid).	5Y return: 12.99% (lower mid).
Point 6	3Y return: 21.39% (upper mid).	3Y return: 25.92% (top quartile).	3Y return: 14.98% (upper mid).	3Y return: 19.35% (upper mid).	3Y return: 22.11% (top quartile).	3Y return: 12.27% (bottom quartile).	3Y return: 11.66% (bottom quartile).	3Y return: 10.45% (bottom quartile).	3Y return: 12.98% (lower mid).	3Y return: 12.78% (lower mid).
Point 7	1Y return: 42.00% (top quartile).	1Y return: 36.31% (top quartile).	1Y return: 20.71% (upper mid).	1Y return: 19.95% (upper mid).	1Y return: 9.43% (upper mid).	1Y return: 9.17% (lower mid).	1Y return: 8.71% (lower mid).	1Y return: 7.61% (bottom quartile).	1Y return: 4.44% (bottom quartile).	1Y return: 4.14% (bottom quartile).
Point 8	Alpha: 0.00 (upper mid).	Alpha: -7.66 (bottom quartile).	Alpha: 0.00 (upper mid).	Alpha: 0.00 (lower mid).	Alpha: 3.86 (top quartile).	Alpha: 3.16 (upper mid).	Alpha: -1.22 (bottom quartile).	Alpha: 4.29 (top quartile).	Alpha: -0.80 (lower mid).	Alpha: -1.97 (bottom quartile).
Point 9	Sharpe: 1.27 (top quartile).	Sharpe: 1.40 (top quartile).	Sharpe: 0.40 (upper mid).	Sharpe: 0.93 (upper mid).	Sharpe: 0.23 (upper mid).	Sharpe: 0.13 (lower mid).	Sharpe: -0.04 (bottom quartile).	Sharpe: 0.08 (lower mid).	Sharpe: 0.02 (bottom quartile).	Sharpe: -0.17 (bottom quartile).
Point 10	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (lower mid).	Information ratio: 1.19 (top quartile).	Information ratio: 0.02 (upper mid).	Information ratio: -0.63 (bottom quartile).	Information ratio: -0.02 (bottom quartile).	Information ratio: -0.12 (bottom quartile).	Information ratio: 0.12 (top quartile).

Franklin Asian Equity Fund

Bottom quartile AUM (₹954 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: High.
5Y return: 8.28% (bottom quartile).
3Y return: 21.39% (upper mid).
1Y return: 42.00% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: 1.27 (top quartile).
Information ratio: 0.00 (upper mid).

DSP US Flexible Equity Fund

Bottom quartile AUM (₹1,296 Cr).
Established history (14+ yrs).
Rating: 5★ (top quartile).
Risk profile: High.
5Y return: 17.94% (top quartile).
3Y return: 25.92% (top quartile).
1Y return: 36.31% (top quartile).
Alpha: -7.66 (bottom quartile).
Sharpe: 1.40 (top quartile).
Information ratio: 0.00 (upper mid).

Aditya Birla Sun Life Small Cap Fund

Upper mid AUM (₹5,865 Cr).
Established history (19+ yrs).
Rating: 5★ (upper mid).
Risk profile: Moderately High.
5Y return: 13.67% (upper mid).
3Y return: 14.98% (upper mid).
1Y return: 20.71% (upper mid).
Alpha: 0.00 (upper mid).
Sharpe: 0.40 (upper mid).
Information ratio: 0.00 (lower mid).

DSP Natural Resources and New Energy Fund

Bottom quartile AUM (₹2,441 Cr).
Established history (18+ yrs).
Rating: 5★ (upper mid).
Risk profile: High.
5Y return: 15.37% (upper mid).
3Y return: 19.35% (upper mid).
1Y return: 19.95% (upper mid).
Alpha: 0.00 (lower mid).
Sharpe: 0.93 (upper mid).
Information ratio: 0.00 (lower mid).

Invesco India Growth Opportunities Fund

Upper mid AUM (₹11,746 Cr).
Established history (19+ yrs).
Rating: 5★ (upper mid).
Risk profile: Moderately High.
5Y return: 16.36% (top quartile).
3Y return: 22.11% (top quartile).
1Y return: 9.43% (upper mid).
Alpha: 3.86 (top quartile).
Sharpe: 0.23 (upper mid).
Information ratio: 1.19 (top quartile).

Tata India Tax Savings Fund

Lower mid AUM (₹4,664 Cr).
Established history (11+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 11.77% (bottom quartile).
3Y return: 12.27% (bottom quartile).
1Y return: 9.17% (lower mid).
Alpha: 3.16 (upper mid).
Sharpe: 0.13 (lower mid).
Information ratio: 0.02 (upper mid).

SBI Small Cap Fund

Highest AUM (₹39,955 Cr).
Established history (17+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 14.17% (upper mid).
3Y return: 11.66% (bottom quartile).
1Y return: 8.71% (lower mid).
Alpha: -1.22 (bottom quartile).
Sharpe: -0.04 (bottom quartile).
Information ratio: -0.63 (bottom quartile).

Aditya Birla Sun Life Banking And Financial Services Fund

Lower mid AUM (₹3,648 Cr).
Established history (12+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: High.
5Y return: 10.07% (bottom quartile).
3Y return: 10.45% (bottom quartile).
1Y return: 7.61% (bottom quartile).
Alpha: 4.29 (top quartile).
Sharpe: 0.08 (lower mid).
Information ratio: -0.02 (bottom quartile).

Kotak Equity Opportunities Fund

Top quartile AUM (₹32,050 Cr).
Oldest track record among peers (22 yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 12.53% (lower mid).
3Y return: 12.98% (lower mid).
1Y return: 4.44% (bottom quartile).
Alpha: -0.80 (lower mid).
Sharpe: 0.02 (bottom quartile).
Information ratio: -0.12 (bottom quartile).

Tata Equity PE Fund

Upper mid AUM (₹8,492 Cr).
Established history (22+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 12.99% (lower mid).
3Y return: 12.78% (lower mid).
1Y return: 4.14% (bottom quartile).
Alpha: -1.97 (bottom quartile).
Sharpe: -0.17 (bottom quartile).
Information ratio: 0.12 (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.