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Top Mutual Funds For Beginners– Best Funds, Benefits & Risks

Mutual funds continue to attract first-time investors in India, with AMFI data showing over 1.6 cr new SIP registrations added in FY 2024–25. The industry’s total assets under management crossed ₹57 lakh cr in 2025, reflecting growing participation from beginners who prefer structured and transparent investment products.

Top Mutual Funds For Beginners in 2025

Top Mutual Funds For Beginners

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

Created by

@82600328260032

Showing 1 - 20 of 51 results

last updated at 8:00 AM IST 
NameMFs (51)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓NAVNAV↓↓CAGR 3YCAGR 3Y↓↓Expense RatioExpense Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓↓Absolute Returns - 3MAbsolute Ret. - 3M↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓
1.SBI Contra Fund
SBI Contra Fund
Contra Fund
Contra Fund
Growth
Growth
49,218.42
49,218.42
432.29
432.29
20.02
20.02
0.76
0.76
0.25
0.25
10.88
10.88
4.32
4.32
3.06
3.06
2.SBI Focused Fund
SBI Focused Fund
Focused Fund
Focused Fund
Growth
Growth
40,823.77
40,823.77
426.88
426.88
17.93
17.93
0.77
0.77
0.10
0.10
11.32
11.32
7.51
7.51
14.72
14.72
3.SBI Large & Midcap Fund
SBI Large & Midcap Fund
Large & Mid Cap Fund
Large & Mid Cap Fund
Growth
Growth
35,514.42
35,514.42
703.74
703.74
17.37
17.37
0.79
0.79
0.10
0.10
12.15
12.15
4.47
4.47
7.54
7.54
4.SBI Multicap Fund
SBI Multicap Fund
Multi Cap Fund
Multi Cap Fund
Growth
Growth
23,986.25
23,986.25
17.69
17.69
17.17
17.17
0.81
0.81
0.25
0.25
12.08
12.08
0.32
0.32
3.46
3.46
5.SBI Midcap Fund
SBI Midcap Fund
Mid Cap Fund
Mid Cap Fund
Growth
Growth
23,036.04
23,036.04
262.33
262.33
16.83
16.83
0.86
0.86
0.10
0.10
12.85
12.85
3.07
3.07
-0.82
-0.82
6.Tata Small Cap Fund
Tata Small Cap Fund
Small Cap Fund
Small Cap Fund
Growth
Growth
11,792.26
11,792.26
41.86
41.86
16.93
16.93
0.33
0.33
0.50
0.50
17.40
17.40
-7.29
-7.29
-12.72
-12.72
7.SBI Banking & Financial Services Fund
SBI Banking & Financial Services Fund
Sectoral Fund - Banks & Financial Services
Sectoral Fund - Banks & Financial Services
Growth
Growth
9,273.44
9,273.44
50.69
50.69
20.34
20.34
0.76
0.76
0.50
0.50
13.17
13.17
8.73
8.73
17.02
17.02
8.Tata Value Fund
Tata Value Fund
Value Fund
Value Fund
Growth
Growth
8,881.65
8,881.65
407.26
407.26
19.65
19.65
0.81
0.81
0.50
0.50
13.99
13.99
6.02
6.02
1.86
1.86
9.Quant Mid Cap Fund
Quant Mid Cap Fund
Mid Cap Fund
Mid Cap Fund
Growth
Growth
8,525.04
8,525.04
238.60
238.60
16.12
16.12
0.75
0.75
0.50
0.50
16.59
16.59
2.92
2.92
-5.41
-5.41
10.SBI PSU Fund
SBI PSU Fund
Thematic Fund
Thematic Fund
Growth
Growth
5,714.14
5,714.14
36.56
36.56
27.89
27.89
0.85
0.85
0.50
0.50
16.92
16.92
6.58
6.58
3.11
3.11
11.Tata Mid Cap Fund
Tata Mid Cap Fund
Mid Cap Fund
Mid Cap Fund
Growth
Growth
5,282.94
5,282.94
508.26
508.26
21.77
21.77
0.62
0.62
0.50
0.50
14.44
14.44
4.17
4.17
3.54
3.54
12.SBI Technology Opp Fund
SBI Technology Opp Fund
Sectoral Fund - Technology
Sectoral Fund - Technology
Growth
Growth
4,934.03
4,934.03
263.68
263.68
17.15
17.15
0.91
0.91
0.50
0.50
14.64
14.64
6.48
6.48
4.44
4.44
13.SBI Infrastructure Fund
SBI Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
4,788.49
4,788.49
53.18
53.18
21.15
21.15
1.13
1.13
0.50
0.50
13.45
13.45
2.50
2.50
-3.83
-3.83
14.Tata Multi Asset Allocation Fund
Tata Multi Asset Allocation Fund
Multi Asset Allocation Fund
Multi Asset Allocation Fund
Growth
Growth
4,478.75
4,478.75
27.60
27.60
16.45
16.45
0.40
0.40
0.50
0.50
7.66
7.66
6.44
6.44
12.84
12.84
15.SBI Healthcare Opp Fund
SBI Healthcare Opp Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
4,082.13
4,082.13
495.98
495.98
24.86
24.86
0.91
0.91
0.50
0.50
13.63
13.63
0.05
0.05
1.62
1.62
16.Tata Flexi Cap Fund
Tata Flexi Cap Fund
Flexi Cap Fund
Flexi Cap Fund
Growth
Growth
3,617.70
3,617.70
27.69
27.69
16.87
16.87
0.62
0.62
0.50
0.50
11.84
11.84
2.69
2.69
7.11
7.11
17.Quant Infrastructure Fund
Quant Infrastructure Fund
Sectoral Fund - Infrastructure
Sectoral Fund - Infrastructure
Growth
Growth
3,302.59
3,302.59
41.75
41.75
17.22
17.22
0.70
0.70
0.50
0.50
18.24
18.24
3.61
3.61
-4.45
-4.45
18.Kotak Pioneer Fund
Kotak Pioneer Fund
Thematic Fund
Thematic Fund
Growth
Growth
3,284.80
3,284.80
35.57
35.57
23.53
23.53
0.49
0.49
0.50
0.50
13.24
13.24
1.41
1.41
8.65
8.65
19.DSP Healthcare Fund
DSP Healthcare Fund
Sectoral Fund - Pharma & Health Care
Sectoral Fund - Pharma & Health Care
Growth
Growth
3,143.91
3,143.91
43.83
43.83
22.03
22.03
0.56
0.56
0.50
0.50
13.98
13.98
1.27
1.27
-3.85
-3.85
20.Tata Banking & Financial Services Fund
Tata Banking & Financial Services Fund
Sectoral Fund - Banks & Financial Services
Sectoral Fund - Banks & Financial Services
Growth
Growth
3,125.23
3,125.23
52.66
52.66
17.85
17.85
0.45
0.45
0.25
0.25
13.29
13.29
8.30
8.30
15.15
15.15
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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

What are Mutual Funds?

Mutual funds are financial instruments that pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities. They are managed by professional fund managers who 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.



How Do Mutual Funds Work?

  1. Pooling Money: Investors contribute capital by purchasing shares or units of the mutual fund. This creates a collective pool of money that the fund manager can invest.
  2. Investment Strategy: Fund managers use the pooled money to buy a variety of assets according to the fund’s investment strategy. For example, an equity fund may invest primarily in stocks, while a bond fund focuses on fixed-income securities.
  3. Net Asset Value (NAV): The value of the mutual fund is determined by its NAV, which is calculated by dividing the total value of the fund’s assets minus liabilities by the number of outstanding shares. The NAV fluctuates daily based on the performance of the underlying investments.

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 favor 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 per regulatory requirements. 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. As per SEBI regulations, the fund allocates a minimum of 35% each to large-cap and mid-cap companies, with the remaining portfolio offering flexibility for allocation 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. Following SEBI's multicap fund regulations, the fund maintains a minimum allocation of 25% each in 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 from 101st to 250th by market capitalisation. The fund typically maintains substantial exposure to this segment, while also having flexibility for 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 for beginners in India with Tickertape Mutual Fund Screener -

  1. Launch Tickertape Mutual Fund Screener.
  2. Sort out the mutual funds for beginners based on over 50 fundamental and technical filters.
  3. After identifying the mutual fund for beginners 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 Hybrid Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.



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:

  1. 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.
  2. 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.
  3. Quick and simple: You can invest in mutual funds easily with a few steps online.

Taxation of Mutual Funds For Beginners

Understanding the latest tax regulations on different types of mutual funds is crucial for managing your investments efficiently. The Union Budget 2024 has introduced several changes impacting the taxation of mutual funds. Here’s a detailed breakdown of the new tax rules:

Type of Fund Short-Term Capital Gains (STCG) Long-Term Capital Gains (LTCG) Indexation Benefits
Equity Funds (including Equity Index/ETF) 20% if units are sold within 12 months 12.5% if held for more than 12 months; gains up to ₹1.25 lakh exempt per FY Not available
Hybrid Funds – Equity-Oriented (65% or more equity allocation) 20% if units are sold within 12 months 12.5% if held for more than 12 months; gains up to ₹1.25 lakh exempt per FY Not available
Hybrid Funds – Debt-Oriented (less than 65% equity allocation) Taxed at the investor’s income tax slab rate Taxed at the investor’s income tax slab rate Not available
Debt Funds Taxed at the investor’s income tax slab rate Taxed at the investor’s income tax slab rate Not available

Types of Mutual Funds for Beginners in India

Equity Mutual Funds

Equity beginner mutual funds invest in stocks and aim for long-term capital growth. Within this category, you can explore options such as funds focusing on specific market segments like large-cap, mid-cap, and sectoral funds. These funds have the potential for higher returns on mutual funds over time, but come with a higher risk due to stock market volatility.

Debt Mutual Funds

Debt funds focus on fixed-income instruments like bonds and treasury bills. Debt funds are considered safer compared to equity funds. However, risks such as interest rate fluctuations and credit quality need to be considered.

Hybrid Mutual Funds

Hybrid funds combine equity and debt in their portfolio, offering a balanced approach to risk and reward. Depending on your goals, you can explore funds that lean more toward equity for growth or debt for stability.

Index Funds

Index funds are passive investment options designed to track market indices like the Nifty 50. Investors seeking low-maintenance strategies often consider top-performing mutual funds in the index fund category. However, it’s important to note that 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 like currency fluctuations and geopolitical issues may impact mutual fund returns.

Benefits of Investing in Mutual Funds For Beginners

Professional Management

Experienced professionals manage mutual funds and make investment decisions for you. This makes it simpler for beginners to enter the market.

Diversification

Mutual funds let you spread money across different asset classes. This cuts down how much any single stock or sector affects your portfolio.

Accessibility

SIPs let you start with small amounts. This opens up mutual fund investing even if you don't have much capital.

Flexibility

Different schemes like equity, debt, and hybrid funds match different comfort levels with risk and time frames for investing.

Liquidity

Most mutual funds let you withdraw money when you need it. Keep in mind you might face exit loads and taxes.

Risks of Investing in Mutual Funds For Beginners

Market Risk

Even the best-performing and tax-saving mutual funds India for beginners don't guarantee returns. Market ups and downs change what your investment is worth.

Expense Ratios

Every mutual fund charges a management fee called the expense ratio. When these fees run high, they eat into your returns.

Lack of Control

Professionals manage mutual funds with consistent performance for long-term beginners. This means you won't pick the individual securities yourself.

Misalignment of Goals

Picking the wrong fund without knowing what it aims to do can disappoint you. Your results might fall short of what you wanted to achieve financially.

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Factors to Consider Before Investing in Mutual Funds For Beginners

Types of Mutual Funds

There are several types of mutual funds with high AUM for wealth creation available, categorised based on their portfolio composition and risk. You need to pick the best mutual fund for beginners or advanced investors based on your investment goals and risk tolerance. Beginners often ask, “Which mutual fund is best for beginners?” The answer depends on your goals.

Align Your Investment Goals

While investing in mutual funds, keep your long-term and short-term goals in mind and find the fund accordingly. Mutual funds for beginners in India, for example, might focus on stable, lower-risk options. It’s also crucial to consider mutual fund performance as a factor in your decision. Researching top performing mutual funds in India can help identify funds that consistently deliver good returns.

Mutual Fund Performance

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. Historical performance does not guarantee future returns and investors should consult a financial advisor when necessary.

Conclusion

Starting your mutual fund investment journey requires careful consideration of your financial goals, risk tolerance, and investment horizon. While the funds listed above have demonstrated strong historical performance across equity, debt, and hybrid categories, it's essential to conduct thorough research and evaluate each fund's characteristics, expense ratios, and portfolio composition before making any investment decisions. Investors can utilise tools like the Tickertape Mutual Fund Screener to analyse and compare the best mutual funds for beginners in India.

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Frequently Asked Questions About Mutual Funds for Beginners

  1. 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.

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

    There is no maximum limit to investing in mutual funds with low expense ratio. You can pick a fund according to your investment goal, risk appetite and fund performance. Also, ensure you have left some money for emergency funds.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  3. 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.

    Disclaimer: You can check the Demat account requirement for mutual funds through the Tickertape Mutual Fund Screener.

  4. Can I withdraw mutual funds anytime?

    Yes, you can generally withdraw money from mutual funds at any time, especially if you are invested in open-end schemes. However, keep in mind that some specific types of mutual funds, like Equity Linked Savings Schemes (ELSS), have a mandatory lock-in period of three years before you can withdraw your investment.

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

    Absolutely! Mutual funds are accessible to investors with varying budgets. Many beginner low-risk mutual funds in India allow you to start investing with a relatively small amount, often as low as ₹500, through Systematic Investment Plans (SIPs). This makes it easy for individuals to begin their investment journey without needing substantial capital upfront.
    Disclaimer: Please note that this is not a recommendation. Please do your own research or check the SID of the specific fund to know more about SIP plans they offer.

  6. Which mutual fund is best for beginners?

    Here are the top-performing mutual funds for beginers sorted according to their 5Y CAGR:

    1. SSBI PSU Fund
    2. Bandhan Infrastructure Fund
    3. Quant Infrastructure Fund
    4. Kotak Infra & Eco Reform Fund
    5. Tata Small Cap Fund

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  7. How to start mutual funds for beginners?

    1. Launch Tickertape Mutual Fund Screener.
    2. Sort out the top mutual funds for beginners based on over 50 fundamental and technical filters.
    3. Click on “Place Order” to invest in the desired mutual fund.
      4. Your order will be placed.

  8. Is a mutual fund 100% safe?

    No, mutual funds are not 100% safe. They carry market risk, and returns are not guaranteed. The value of your investment can fluctuate based on market conditions, and you may receive less than your invested amount when you redeem your units.
    Disclaimer: Investors should understand that these funds are subject to market risks and should review their financial goals, risk tolerance, and time horizon before investing.

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.