Last Updated on Feb 9, 2024 by Harshit Singh
Everyone knows the benefits of mutual funds, but finding the right one from thousands of funds can be an overwhelming task, especially for beginners. Here in this article, we’ve listed the best mutual funds for beginners according to the different categories – equity, debt and hybrid.
Table of Contents
Best mutual funds for beginners (2024)
Based on three different categories, we’ve listed the best mutual funds for each. The lists are derived using Tickertape’s Mutual Fund Screener.
Best equity mutual fund for beginners
| Name | Sub-Category | AUM (Rs. in cr.) | 5Y CAGR (%) | 3Y CAGR (%) | Expense Ratio (%) | Volatility (%) | Minimum Lumpsum (Rs.) |
| Quant Small Cap Fund | Small Cap Fund | 8,075.14 | 30.94 | 47.73 | 0.77 | 14.69 | 5,000.00 |
| Quant Infrastructure Fund | Sectoral Fund – Infrastructure | 930.50 | 28.01 | 44.59 | 0.77 | 15.53 | 5,000.00 |
| SBI Tax Advantage Fund-III | Equity Linked Savings Scheme (ELSS) | 31.69 | 27.18 | 30.09 | 0.00 | 8.62 | Not allowed |
| Quant Tax Plan | Equity Linked Savings Scheme (ELSS) | 4,433.80 | 26.82 | 36.58 | 0.76 | 13.29 | 500.00 |
| Nippon India Small Cap Fund | Small Cap Fund | 36,539.55 | 26.64 | 44.17 | 0.72 | 11.16 | Not allowed |
| Axis Small Cap Fund | Small Cap Fund | 15,847.24 | 26.45 | 34.73 | 0.55 | 9.05 | 100.00 |
| Quant Mid Cap Fund | Mid Cap Fund | 2,531.32 | 26.31 | 40.55 | 0.76 | 14.47 | 5,000.00 |
| ICICI Pru Smallcap Fund | Small Cap Fund | 6,510.80 | 26.00 | 39.50 | 0.70 | 9.69 | 5,000.00 |
| Kotak Small Cap Fund | Small Cap Fund | 12,285.82 | 25.57 | 37.49 | 0.43 | 8.64 | 100.00 |
| SBI LT Advantage Fund-IV | Equity Linked Savings Scheme (ELSS) | 186.54 | 25.54 | 35.12 | 0.00 | 8.81 | Not allowed |
Note: The information is dated 7th February 2024. The parameters used to filter the top 10 equity mutual funds in India for 2024 for beginners on the Tickertape Mutual Fund Screener are mentioned below.
- Category > Equity
- Plan: Growth
- 5-yr CAGR: Set from highest to lowest
Best debt mutual funds for beginners
| Name | Sub-Category | AUM (Rs. in cr.) | 5Y CAGR (%) | 3Y CAGR (%) | Expense Ratio (%) | Volatility (%) | Minimum Lumpsum (Rs.) |
| Nippon India Nivesh Lakshya Fund | Long Duration Fund | 6,348.08 | 9.23 | 4.67 | 0.30 | 3.78 | 5,000.00 |
| Aditya Birla SL Medium Term Plan | Medium Duration Fund | 1,890.60 | 9.02 | 13.56 | 0.87 | 1.02 | 1,000.00 |
| DSP G-Sec Fund | Gilt – Short & Mid Term Fund | 592.28 | 8.85 | 5.13 | 0.54 | 1.67 | 100.00 |
| SBI Magnum Gilt Fund | Gilt – Short & Mid Term Fund | 7,195.93 | 8.84 | 5.84 | 0.46 | 1.88 | 5,000.00 |
| Bandhan G-Sec-Invest | Gilt – Short & Mid Term Fund | 1,453.46 | 8.75 | 4.52 | 0.62 | 1.92 | 1,000.00 |
| ICICI Pru Constant Maturity Gilt Fund | Gilt – Long Term Fund | 2,195.83 | 8.67 | 4.37 | 0.23 | 2.93 | 5,000.00 |
| Kotak Gilt Fund | Gilt – Short & Mid Term Fund | 2,387.71 | 8.67 | 5.68 | 0.42 | 1.62 | 100.00 |
| Kotak Gilt Fund-PF&Trust | Gilt – Short & Mid Term Fund | 2,387.71 | 8.67 | 5.68 | 0.42 | 1.62 | 100.00 |
| Edelweiss Government Securities Fund | Gilt – Short & Mid Term Fund | 137.62 | 8.65 | 5.62 | 0.49 | 2.08 | 5,000.00 |
| Bandhan G-Sec-Constant Maturity Plan | Gilt – Long Term Fund | 302.98 | 8.62 | 3.87 | 0.29 | 2.94 | 1,000.00 |
Note: The information is dated 7th February 2024. Below are the parameters used to filter the top 10 debt mutual funds in India for 2024 for beginners on the Tickertape Mutual Fund Screener.
- Category > Debt
- Plan: Growth
- 5-yr CAGR: Set from highest to lowest
Best hybrid mutual funds for beginners
| Name | Sub-Category | AUM (Rs. in cr.) | 5Y CAGR (%) | 3Y CAGR (%) | Expense Ratio (%) | Volatility (%) | Minimum Lumpsum (Rs.) |
| Quant Multi Asset Fund | Multi Asset Allocation Fund | 936.86 | 23.24 | 29.21 | 0.67 | 9.39 | 5,000.00 |
| Quant Absolute Fund | Aggressive Hybrid Fund | 1,335.08 | 21.56 | 28.14 | 0.75 | 10.33 | 5,000.00 |
| Bank of India Mid & Small Cap Equity & Debt Fund | Aggressive Hybrid Fund | 462.92 | 18.69 | 28.15 | 1.55 | 9.38 | 5,000.00 |
| ICICI Pru Equity & Debt Fund | Aggressive Hybrid Fund | 24,990.09 | 17.93 | 31.58 | 1.12 | 6.99 | 5,000.00 |
| ICICI Pru Multi-Asset Fund | Multi Asset Allocation Fund | 21,705.11 | 17.27 | 29.80 | 1.01 | 5.91 | 5,000.00 |
| HDFC Balanced Advantage Fund | Balanced Advantage Fund | 60,640.94 | 16.76 | 30.84 | 0.84 | 7.02 | 100.00 |
| Kotak Equity Hybrid Fund | Aggressive Hybrid Fund | 4,049.59 | 16.54 | 23.25 | 0.47 | 6.47 | 100.00 |
| Baroda BNP Paribas Aggressive Hybrid Fund | Aggressive Hybrid Fund | 863.30 | 16.07 | 20.30 | 0.60 | 7.61 | 5,000.00 |
| Edelweiss Aggressive Hybrid Fund | Aggressive Hybrid Fund | 822.90 | 15.86 | 24.50 | 0.57 | 7.18 | 5,000.00 |
| DSP Equity & Bond Fund | Aggressive Hybrid Fund | 8,121.32 | 15.17 | 19.85 | 0.79 | 7.23 | 100.00 |
Note: The information is dated 7th February 2024. Below are the parameters used to filter the top 10 hybrid mutual funds in India for 2024 for beginners on the Tickertape Mutual Fund Screener.
- Category > Hybrid
- Plan: Growth
- 5-yr CAGR: Set from highest to lowest.
How to invest in mutual funds in India for beginners?
You can make a lump sum investment in mutual funds or choose SIP for periodic investments. Once you’ve decided the way you want to invest and the fund, you can invest as per the ways below:
- Online or offline from the mutual fund house directly
- Through your broker
- Through AMFI registered agents
You can use Tickertape Mutual Fund Screener to find the best mutual funds in India. You can filter the funds based on your preferred parameters like AUM, NAV, 1-yr returns and more. You can also download the list of funds filtered as per your preferred parameters.
The best part is you can watchlist your favourite funds to monitor them regularly. Click to learn more about how to use Tickertape Mutual Fund Screener.
Why should you invest in mutual funds?
Mutual funds are managed by fund managers who invest your money into different asset classes for profits. The reasons you need to invest in mutual funds are below:
- Start little: Mutual funds provide an opportunity to invest with less investment, starting at Rs. 100 at regular intervals. This can even establish a disciplined approach in you.
- Diversified: As the investment is made in different instruments, the investment is diversified. Hence, even if one asset doesn’t perform well, there can be other options in the fund to compensate for the loss.
- Quick and simple: You can invest in mutual funds online quickly with simple steps.
Important factors to know while investing in mutual funds
Though mutual funds can provide good returns with a diversified option, there are certain factors you need to consider before investing.
- There are several mutual funds available that are categorised based on their portfolio composition and risk. You need to pick the right mutual fund according to your investment goal and risk tolerance.
- While investing in mutual funds, keep your long-term and short-term goals in mind and find the fund accordingly.
- It is important to check the fund’s performance before investing. However, you also must remember that the fund may not perform the same way yearly.
- Ensure your fund is not over-diversified, as it can dilute your profits.
Conclusion
Mutual funds can be a good investment option only when you understand the workings of the fund. Ensure it aligns with your investment objective. You can do your research or contact a financial advisor before investing.
FAQs
Can NRIs invest in mutual funds in India?
Yes. NRIs are allowed to invest in mutual funds in India. However, you can check the scheme’s terms and conditions before investing.
How much money can I invest in mutual funds?
There is no maximum limit to investing in mutual funds. But pick a fund according to your investment goal, risk appetite and fund performance. Also, ensure you have left some money for emergency funds.
Do we need a Demat account to invest in mutual funds?
No. Having a Demat account to invest in mutual funds is not mandatory. However, you must complete your KYC with the AMC (Asset Management Company) you are picking to invest in mutual funds. The KYC includes the basic details of an investor.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
- Introducing Alerts: Your Personalized Gateway to Informed Investing! - Apr 18, 2024
- Digital Gold vs Gold ETF vs SGB – Where to invest in 2024? - Apr 15, 2024
- Highest Return Stocks in Last 1 Year (Nifty 500) - Apr 4, 2024
