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Best Mutual Funds for Beginners: Performance, NAV & Returns 2026

India’s mutual fund industry reached ₹87.08 lakh cr in AUM as of 31 August 2026, up from ₹15.63 lakh cr in August 2016, representing nearly six-fold growth over ten years. Total folios also rose to 28.35 cr. Mutual funds provide access across equity, debt, hybrid, passive and other categories, while monthly SIP contributions reached ₹32,297 cr in August 2026. Understanding how different schemes work, their return drivers and associated risks can help investors evaluate the category more effectively.

Top Mutual Funds For Beginners in 2026

Top Mutual Funds For Beginners

Here's the list of top mutual funds for beginners in India.

Created by

@82600328260032

Showing 1 - 13 of 13 results

last updated at 11:00 PM IST 
NameMFs (13)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓NAVNAV↓↓CAGR 3YCAGR 3Y↓↓Base Exp. RatioBase Exp. Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓↓Absolute Returns - 3MAbsolute Ret. - 3M↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓
1.SBI PSU Fund
SBI PSU Fund
Thematic Fund
Thematic Fund
Growth
Growth
6,353.85
6,353.85
35.64
35.64
17.75
17.75
0.73
0.73
0.50
0.50
15.00
15.00
-7.27
-7.27
-1.69
-1.69
2.SBI Healthcare Opp Fund
SBI Healthcare Opp Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
5,870.00
5,870.00
573.02
573.02
22.40
22.40
0.73
0.73
0.50
0.50
12.81
12.81
-0.64
-0.64
15.21
15.21
3.Kotak Pioneer Fund
Kotak Pioneer Fund
Thematic Fund
Thematic Fund
Growth
Growth
4,294.62
4,294.62
38.37
38.37
19.58
19.58
0.47
0.47
0.50
0.50
13.43
13.43
1.59
1.59
7.56
7.56
4.DSP Healthcare Fund
DSP Healthcare Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
3,750.04
3,750.04
49.41
49.41
20.73
20.73
0.53
0.53
0.50
0.50
12.32
12.32
0.27
0.27
14.30
14.30
5.ITI Small Cap Fund
ITI Small Cap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
3,666.32
3,666.32
37.67
37.67
22.70
22.70
0.45
0.45
0.50
0.50
17.73
17.73
2.03
2.03
18.41
18.41
6.Kotak Manufacture in India Fund
Kotak Manufacture in India Fund
Thematic Fund
Thematic Fund
Growth
Growth
3,132.02
3,132.02
23.07
23.07
19.26
19.26
0.56
0.56
0.50
0.50
15.66
15.66
2.33
2.33
12.74
12.74
7.ITI Flexi Cap Fund
ITI Flexi Cap Fund
Flexi Cap Fund
Flexi Cap Fund
Growth
Growth
1,588.13
1,588.13
20.62
20.62
17.93
17.93
0.53
0.53
0.50
0.50
15.29
15.29
-0.10
-0.10
9.55
9.55
8.ITI Mid Cap Fund
ITI Mid Cap Fund
Mid Cap Fund
Mid Cap Fund
Growth
Growth
1,539.20
1,539.20
24.47
24.47
17.92
17.92
0.49
0.49
0.50
0.50
16.32
16.32
-4.26
-4.26
4.46
4.46
9.Tata India Pharma & Healthcare Fund
Tata India Pharma & Healthcare Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
1,511.49
1,511.49
37.05
37.05
17.90
17.90
0.63
0.63
0.25
0.25
11.72
11.72
-4.18
-4.18
3.99
3.99
10.Bandhan Transportation and Logistics Fund
Bandhan Transportation and Logistics Fund
Thematic Fund
Thematic Fund
Growth
Growth
727.03
727.03
20.13
20.13
17.25
17.25
0.77
0.77
0.50
0.50
17.47
17.47
-3.38
-3.38
-0.63
-0.63
11.Aditya Birla SL Nifty Smallcap 50 Index Fund
Aditya Birla SL Nifty Smallcap 50 Index Fund
Index Fund
Index Fund
Growth
Growth
364.19
364.19
23.65
23.65
17.27
17.27
0.41
0.41
0.25
0.25
18.47
18.47
0.49
0.49
11.27
11.27
12.ITI Pharma & Healthcare Fund
ITI Pharma & Healthcare Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
266.05
266.05
19.04
19.04
18.30
18.30
0.58
0.58
0.50
0.50
13.38
13.38
-1.14
-1.14
7.13
7.13
13.Aditya Birla SL Global Excellence Equity FoF
Aditya Birla SL Global Excellence Equity FoF
FoFs (Overseas)
FoFs (Overseas)
Growth
Growth
239.58
239.58
47.96
47.96
23.36
23.36
0.58
0.58
0.25
0.25
14.92
14.92
2.99
2.99
20.39
20.39
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: Plan: Growth | Filters: Exit load - Low, Expense ratio - Low, Volatility - Capped till 20 (0-20), 3 YR CAGR - High | AUM: Sorted from Highest to Lowest

Understanding Mutual Funds

Mutual funds are financial instruments that pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities. Professional fund managers manage them and aim to achieve specific investment objectives. For those new to investing, mutual funds offer an accessible and simplified way to participate in the financial markets.



Overview of the Top Mutual Funds for Beginners in India

SBI Contra Fund

SBI Contra Fund is an open-ended equity scheme following a contrarian investment strategy. The fund identifies stocks that are currently undervalued or out of favour with the market but have strong fundamentals and growth potential. This approach involves taking positions opposite to prevailing market sentiment, investing in sectors or companies that may be temporarily depressed but show promise for future recovery.

SBI Focused Fund

SBI Focused Fund is an open-ended equity scheme that concentrates its investments in a limited number of stocks, typically maintaining a portfolio of 30 stocks or fewer, as required by regulations. This concentrated approach allows the fund manager to take high-conviction positions in their best investment ideas across sectors and market capitalisations.

SBI Large & Midcap Fund

SBI Large & Midcap Fund is an open-ended equity scheme that invests in both large-cap and mid-cap stocks. Under SEBI regulations, the fund allocates at least 35% to large-cap and 35% to mid-cap companies, with the remaining portion allocated flexibly based on market opportunities.

SBI Multicap Fund

SBI Multicap Fund is an open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks. Under SEBI's multicap fund regulations, the fund maintains a minimum allocation of 25% each to large-cap, mid-cap, and small-cap stocks, with the remaining 25% available for flexible allocation.

SBI Midcap Fund

SBI Midcap Fund is an open-ended equity scheme that predominantly invests in mid-cap stocks. According to SEBI's categorisation, mid-cap companies are those ranked between the 101st and 250th positions by market capitalisation. The fund typically maintains substantial exposure to this segment, while also allowing some allocation to other market capitalisations.

How to Invest in Mutual Funds for Beginners in India?

Here’s how you can identify and invest in top mutual funds with Tickertape Mutual Fund Screener -

  1. Launch Tickertape Mutual Fund Screener.
  2. Under the “Equity” Category and search for the type of mutual fund you want to invest in.
  3. Sort out the top mutual funds based on over 50 fundamental and technical filters.
  4. After identifying the best mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation of Mutual Funds For Beginners

Here’s the table based on the 2026 mutual fund tax framework, separating equity-oriented and non-equity funds, and noting the Budget 2026 dividend-related change.

Type of Mutual Fund Tax Type Tax Treatment
Equity-Oriented Mutual Funds Short-Term Capital Gains (STCG) Taxed at the applicable concessional rate under the relevant capital gains provisions, subject to applicable STT conditions.
Equity-Oriented Mutual Funds Long-Term Capital Gains (LTCG) Gains above ₹1.25 lakh are taxed at 12.5%, subject to applicable STT conditions.
Non-Equity Mutual Funds Short-Term Capital Gains (STCG) Taxed at the applicable income tax slab rate.
Non-Equity Mutual Funds Long-Term Capital Gains (LTCG) Taxed at 12.5% without indexation.
Dividend / Income from Mutual Fund Units Income Tax Treatment As per Finance Bill 2026, no deduction is allowed for any expenditure against dividend income and income from mutual fund units from 1 April 2026 onward.

Types of Mutual Funds

When exploring the top mutual funds for new investors or the easy mutual funds for beginners, it is important to understand the different categories available. These funds meet different investment needs, risk levels, and financial goals.


Equity Mutual Funds

Equity beginner mutual funds invest in stocks and suit individuals seeking long-term capital growth. Within this category, you can explore options such as long-term equity mutual funds, best equity mutual funds, or funds focusing on specific market segments like large-cap, mid-cap, and sectoral funds. These funds can deliver higher returns than debt funds over time but carry higher risk due to stock market volatility.

Debt Mutual Funds

Debt mutual funds focus on fixed-income instruments like bonds and treasury bills. They are designed for investors who prioritise stability and predictable returns. Among mutual fund investment plans for beginners, debt funds are considered safer than equity funds. However, investors should consider risks such as interest rate fluctuations and credit quality. Many investors looking for top-performing mutual funds in India include debt funds in their portfolio for balance and diversification.

Hybrid Mutual Funds

Hybrid mutual funds combine equity and debt in their portfolio, offering a balanced approach to risk and reward. If you are searching for mutual funds to invest in 2024, hybrid funds may provide diversification with moderate risk. Depending on your goals, you can explore funds that lean more toward equity for growth or debt for stability. Hybrid funds are often among the best mutual funds in India because of their flexibility and ability to meet diverse investor needs.

Index Funds

Index funds are passive investment options designed to track market indices such as the Nifty 50 or the Sensex. These funds are often among the top 10 mutual funds for their simplicity, low cost, and alignment with market performance. Investors seeking low-maintenance strategies often consider top-performing index funds. However, these funds only match the market’s performance and do not offer opportunities to outperform it.

International Funds

International funds invest in global markets, providing exposure to foreign equities or debt instruments. These funds can diversify your mutual fund portfolio and reduce dependence on domestic markets. However, risks such as currency fluctuations and geopolitical issues may affect mutual fund returns. For investors seeking global diversification, these funds may be among the best mutual funds in India for 2024, whether for SIP or lump-sum investments.

Benefits of Investing in Mutual Funds For Beginners

Diversification

A single mutual fund can spread money across multiple securities, reducing dependence on one company. HDFC Balanced Advantage Fund held equity, government securities, credit exposure and cash across its August 2026 portfolio.

Low Starting Amount

SIPs make mutual funds accessible without a large upfront investment. AMFI notes that SIPs can start from ₹500 monthly, while Chhoti SIPs can begin at ₹250, supporting gradual investing for first-time investors.

Professional Management

Fund managers handle security selection, allocation and portfolio monitoring. HDFC Balanced Advantage Fund, for example, uses separate managers across equity, fixed income, arbitrage and overseas investments, illustrating how specialised management operates within one scheme.

Passive Access

Index funds can provide market exposure without requiring beginners to select individual stocks. UTI Nifty Next 50 Index Fund had a one-year tracking error of just 0.04% for its direct plan in 2026.

Regular Investing

SIPs encourage periodic investing instead of depending on market timing. Monthly SIP contributions reached ₹32,297 cr in August 2026, while contributing SIP accounts crossed 10 cr, showing the scale of systematic investing in India.

Risks of Investing in Mutual Funds For Beginners

Market Volatility

Equity-oriented funds can decline when stock markets correct. HDFC Balanced Advantage Fund still had 71.36% unhedged equity exposure in August 2026, meaning its NAV remained materially influenced by movements in equity markets.

Interest Rate Risk

Debt exposure does not eliminate volatility. HDFC Balanced Advantage Fund had a modified duration of 4.56 years in August 2026, meaning its debt portfolio could react noticeably when market interest rates and bond yields change.

Tracking Difference

Passive funds do not exactly match their benchmarks after costs and portfolio effects. UTI Nifty Next 50 Index Fund’s regular plan showed a five-year tracking difference of -0.91% annually as of August 2026.

Cost Differences

Plan choice affects ongoing expenses. UTI Nifty Next 50 Index Fund charged a 0.42% TER for its direct plan versus 0.87% for the regular plan in August 2026, showing how costs can differ within the same scheme.

Category Confusion

Beginners may treat all mutual funds alike despite very different risk profiles. For instance, UTI’s five-year government bond ETF itself carries relatively high interest-rate risk, even though its underlying securities have low credit risk.

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Factors to Consider Before Investing in Mutual Funds For Beginners

Fund Category

The category determines what primarily drives returns. Equity funds depend largely on stock markets, while debt funds react to yields and credit conditions. Beginners should understand this distinction before comparing schemes only through historical returns.

Risk Level

Assess risk through the portfolio rather than the fund name. HDFC Balanced Advantage Fund held over 71% unhedged equity in August 2026, showing that even hybrid-labelled schemes can retain substantial market exposure.

Expense Ratio

Costs directly reduce investor returns over time. UTI Nifty Next 50 Index Fund’s direct and regular TERs were 0.42% and 0.87%, respectively, illustrating why plan-level expenses matter when comparing otherwise identical portfolios.

Tracking Quality

For index funds, tracking error shows how closely returns follow the benchmark. UTI Nifty Next 50 Index Fund reported 0.04% one-year tracking error for its direct plan in September 2026, indicating relatively close replication.

Investment Horizon

Different funds suit different time frames because volatility and portfolio duration vary. Equity-heavy schemes may experience larger short-term swings, while debt funds with longer duration can remain sensitive to changing interest-rate expectations.

Exit Load

Redemption terms can affect short holding periods. HDFC Balanced Advantage Fund allows 15% of units to be redeemed without exit load after purchase, while additional redemptions may attract charges depending on timing.

Conclusion

Mutual funds provide a structured way to participate in financial markets across different asset classes. Their performance depends on market conditions, fund category, and portfolio strategy. While they offer diversification and flexibility, outcomes can vary over time. Reviewing fund objectives, risks, and costs remains important before making any investment decision.

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Frequently Asked Questions About Mutual Funds for Beginners

  1. What are mutual funds?

    Mutual funds are investment vehicles that pool money from multiple investors and invest across assets such as stocks, bonds, gold or money market instruments. For those exploring mutual funds for beginners, the units represent a proportionate share of the underlying portfolio.

  2. Can NRIs invest in mutual funds in India?

    Yes. NRIs can invest in mutual funds in India, subject to scheme-specific terms and applicable regulations. Those comparing the best mutual funds for beginners in India should also check NRI eligibility before investing. \\Disclaimer:\ NRI mutual fund investments may be subject to FEMA rules, tax laws, and country-specific restrictions. This information is for educational purposes only.\

  3. How much money can I invest in mutual funds?

    There is generally no fixed upper limit on mutual fund investments. Investors researching the best SIP mutual fund can consider their goals, risk appetite, investment horizon and emergency-fund requirements before deciding the amount. \\Disclaimer:\ The amount invested in mutual funds depends on the scheme, investment mode, and individual financial situation. This is not a recommendation.\

  4. Do we need a demat account for mutual fund investment plans for beginners?

    No. A demat account isn't required for most mutual fund investments. Investors exploring mutual funds for beginners generally need to complete KYC with the AMC or investment platform before placing an order.

  5. How to invest in mutual funds for beginners?

    \

    Here’s how to invest in mutual funds for beginners through Tickertape:\
    \

      \
    1. Launch Tickertape Mutual Fund Screener.\
      2. \
    2. Select the mutual funds for beginners that aligns with your investment goals.\
      3. \
    3. Click on “Place Order” and select the option “SIP” or "Lumpsum". Enter the amount and confirm “OK”\
      4. \
    \
    Your order will be placed.

  6. How to invest in SIP for beginners?

    \

    Here’s how you can explore a SIP for beginners through Tickertape:\

    \
      \
    1. Launch Tickertape Mutual Fund Screener.\
      2. \
    2. Sort out the top SIP Plans based on over 50 fundamental and technical filters that align with your investment thesis.\
      3. \
    3. After that, click on “Place Order” to invest in the mutual fund.\
      4. Your order will be placed.

  7. Can I withdraw mutual funds anytime?

    Yes, open-ended mutual funds generally allow redemptions at any time, subject to applicable exit loads. Investors comparing the best mutual funds for beginners in India should also check lock-in periods for schemes such as ELSS.

  8. Can I start investing in mutual funds with a small amount of money?

    Yes. Many schemes let investors start with relatively small amounts through SIPs. Those researching the best SIP mutual fund can compare minimum investment requirements, risk, costs and portfolio strategy before investing.

  9. How to choose mutual funds for beginners?

    Beginners can review fund category, risk level, expense ratio, portfolio strategy and performance across market cycles. When assessing which type of mutual fund is best for beginners, suitability should depend on goals, risk tolerance and investment horizon. \\Disclaimer:\ This information is for educational purposes only and should not be considered investment advice.\

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.