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. Disclaimer: NRI mutual fund investments may be subject to FEMA rules, tax laws, and country-specific restrictions. This information is for educational purposes only.

How much money can I invest in mutual funds?

There is no limit to investing in low-expense-ratio mutual funds. But pick a fund based on your investment goals, risk appetite, and performance. Also, ensure you have left some money for emergency funds. Disclaimer: The amount invested in mutual funds depends on the scheme, investment mode, and individual financial situation. This is not a recommendation.

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

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.

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.

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.

How to choose mutual funds for beginners?

Beginners can choose mutual funds by checking the fund category, risk level, expense ratio, portfolio strategy, and consistency across market cycles. It also helps to compare funds using the Tickertape Mutual Fund Screener, which offers multiple filters for analysing returns, risk, category, and other key mutual fund parameters. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

How to invest in SIP for beginners?

Here’s how you can identify and invest in the top SIPs in mutual funds - Launch Tickertape Mutual Fund Screener. Sort out the top SIP Plans based on over 50 fundamental and technical filters that align with your investment thesis. After that, click on “Place Order” to invest in the mutual fund. Your order will be placed.

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

Q: How to invest in mutual funds for beginners?

Here’s how you can invest in mutual funds for beginners: Launch Tickertape Mutual Fund Screener. Select the mutual funds for beginners that aligns with your investment goals. Click on “Place Order” and select the option “SIP” or "Lumpsum". Enter the amount and confirm “OK” Your order will be placed.

Mutual funds have become a key part of India’s investment landscape, with industry AUM reaching ₹73.73 lakh cr. in March 2026. They offer access to diversified portfolios across equity, debt, and hybrid categories. Understanding how mutual funds work, along with their risks and key factors, can help in evaluating this category.

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

@8260032 8260032

Showing 1 - 20 of 40 results

last updated at 8:00 AM IST

	NameMFs (40)↓	↓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 Focused Fund SBI Focused Fund	Focused Fund Focused Fund	Growth Growth	46,041.95 46,041.95	424.50 424.50	16.82 16.82	0.80 0.80	0.10 0.10	12.26 12.26	3.46 3.46	8.22 8.22
2.	SBI Banking & Financial Services Fund SBI Banking & Financial Services Fund	Sectoral Fund - Banks & Financial Services Sectoral Fund - Banks & Financial Services	Growth Growth	10,374.95 10,374.95	46.40 46.40	16.11 16.11	1.05 1.05	0.50 0.50	15.13 15.13	-6.37 -6.37	-1.01 -1.01
3.	Quant Mid Cap Fund Quant Mid Cap Fund	Mid Cap Fund Mid Cap Fund	Growth Growth	7,904.71 7,904.71	242.16 242.16	17.19 17.19	0.74 0.74	0.50 0.50	13.87 13.87	12.57 12.57	-1.90 -1.90
4.	SBI PSU Fund SBI PSU Fund	Thematic Fund Thematic Fund	Growth Growth	6,669.45 6,669.45	38.32 38.32	29.90 29.90	0.85 0.85	0.50 0.50	14.67 14.67	-3.98 -3.98	8.28 8.28
5.	Tata Mid Cap Fund Tata Mid Cap Fund	Mid Cap Fund Mid Cap Fund	Growth Growth	5,604.35 5,604.35	500.21 500.21	18.64 18.64	0.57 0.57	0.50 0.50	14.21 14.21	1.12 1.12	3.76 3.76
6.	SBI Infrastructure Fund SBI Infrastructure Fund	Sectoral Fund - Infrastructure Sectoral Fund - Infrastructure	Growth Growth	4,804.69 4,804.69	54.22 54.22	18.50 18.50	1.04 1.04	0.50 0.50	14.01 14.01	5.26 5.26	0.61 0.61
7.	SBI Healthcare Opp Fund SBI Healthcare Opp Fund	Sectoral Fund - Pharma & Health Care Sectoral Fund - Pharma & Health Care	Growth Growth	4,323.29 4,323.29	537.76 537.76	26.00 26.00	0.92 0.92	0.50 0.50	12.26 12.26	8.84 8.84	11.49 11.49
8.	Kotak Pioneer Fund Kotak Pioneer Fund	Thematic Fund Thematic Fund	Growth Growth	3,495.30 3,495.30	36.83 36.83	21.67 21.67	0.53 0.53	0.50 0.50	12.37 12.37	9.96 9.96	10.83 10.83
9.	DSP Healthcare Fund DSP Healthcare Fund	Sectoral Fund - Pharma & Health Care Sectoral Fund - Pharma & Health Care	Growth Growth	3,142.36 3,142.36	45.92 45.92	23.49 23.49	0.52 0.52	0.50 0.50	12.23 12.23	11.39 11.39	9.12 9.12
10.	Quant Infrastructure Fund Quant Infrastructure Fund	Sectoral Fund - Infrastructure Sectoral Fund - Infrastructure	Growth Growth	3,072.93 3,072.93	44.42 44.42	21.31 21.31	0.76 0.76	0.50 0.50	18.41 18.41	14.82 14.82	7.22 7.22
11.	Kotak Business Cycle Fund Kotak Business Cycle Fund	Thematic Fund Thematic Fund	Growth Growth	3,064.28 3,064.28	17.00 17.00	16.44 16.44	0.66 0.66	0.50 0.50	13.57 13.57	3.75 3.75	1.75 1.75
12.	ITI Small Cap Fund ITI Small Cap Fund	Small Cap Fund Small Cap Fund	Growth Growth	2,936.51 2,936.51	33.42 33.42	24.99 24.99	0.54 0.54	0.50 0.50	16.74 16.74	12.18 12.18	5.30 5.30
13.	Kotak Manufacture in India Fund Kotak Manufacture in India Fund	Thematic Fund Thematic Fund	Growth Growth	2,669.42 2,669.42	21.56 21.56	21.20 21.20	0.61 0.61	0.50 0.50	14.93 14.93	2.31 2.31	11.30 11.30
14.	Kotak Infra & Eco Reform Fund Kotak Infra & Eco Reform Fund	Sectoral Fund - Infrastructure Sectoral Fund - Infrastructure	Growth Growth	2,373.02 2,373.02	78.73 78.73	17.78 17.78	0.72 0.72	0.50 0.50	16.17 16.17	3.58 3.58	2.00 2.00
15.	Tata Infrastructure Fund Tata Infrastructure Fund	Sectoral Fund - Infrastructure Sectoral Fund - Infrastructure	Growth Growth	2,084.20 2,084.20	193.45 193.45	16.99 16.99	0.99 0.99	0.25 0.25	15.61 15.61	8.27 8.27	2.58 2.58
16.	SBI Nifty Next 50 Index Fund SBI Nifty Next 50 Index Fund	Index Fund Index Fund	Growth Growth	2,028.50 2,028.50	19.10 19.10	17.81 17.81	0.33 0.33	0.25 0.25	16.34 16.34	2.41 2.41	2.11 2.11
17.	Edelweiss Nifty Midcap150 Momentum 50 Index Fund Edelweiss Nifty Midcap150 Momentum 50 Index Fund	Index Fund Index Fund	Growth Growth	1,585.71 1,585.71	18.00 18.00	19.98 19.98	0.45 0.45	0.50 0.50	17.61 17.61	2.06 2.06	-3.31 -3.31
18.	SBI Nifty Smallcap 250 Index Fund SBI Nifty Smallcap 250 Index Fund	Index Fund Index Fund	Growth Growth	1,549.00 1,549.00	18.24 18.24	18.07 18.07	0.43 0.43	0.25 0.25	16.77 16.77	8.51 8.51	-3.05 -3.05
19.	Bandhan Infrastructure Fund Bandhan Infrastructure Fund	Sectoral Fund - Infrastructure Sectoral Fund - Infrastructure	Growth Growth	1,501.91 1,501.91	56.80 56.80	20.58 20.58	0.73 0.73	0.50 0.50	16.48 16.48	4.97 4.97	-3.64 -3.64
20.	ITI Multi Cap Fund ITI Multi Cap Fund	Multi Cap Fund Multi Cap Fund	Growth Growth	1,364.64 1,364.64	27.81 27.81	19.27 19.27	0.62 0.62	0.50 0.50	14.64 14.64	5.20 5.20	4.89 4.89

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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. 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?

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.
Investment Strategy: Fund managers use pooled money to buy a variety of assets in line with the fund’s investment strategy. For example, an equity fund may invest primarily in stocks, while a bond fund focuses on fixed-income securities.
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 with Tickertape Mutual Fund Screener -

Launch Tickertape Mutual Fund Screener.
Under the “Equity” Category and search for the type of mutual fund you want to invest in.
Sort out the top mutual funds based on over 50 fundamental and technical filters.
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 cater to varying investment needs, risk levels, and financial goals.

Equity Mutual Funds

Equity beginner mutual funds invest in stocks and are ideal for individuals aiming for 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 have the potential to deliver higher returns on mutual funds over time, but carry higher risk due to stock market volatility. For those seeking the best mutual fund portfolio 2024, equity funds may play a significant role.

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 from mutual funds. Among mutual fund investment plans for beginners, debt funds are considered safer than equity funds. However, risks such as interest rate fluctuations and credit quality need to be considered. 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 due to their flexibility and ability to cater to 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 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 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

Low Starting Amount

Mutual funds allow beginners to start investing with relatively small amounts through SIPs. This has contributed to wider retail participation in India, with SIP collections reaching ₹31,115 cr in April 2026. Smaller contribution sizes make the category accessible across different income groups.

Diversification

A mutual fund spreads money across multiple securities instead of relying on a single stock or bond. This diversification can reduce concentration risk because the overall portfolio is not dependent on the performance of a single company or sector.

Professional Management

Mutual funds are managed by professional fund managers who track markets, analyse companies, and manage portfolio allocation. This structure gives beginners access to professionally managed portfolios without needing to research and manage individual securities directly.

Wide Choice of Categories

The mutual fund industry offers multiple categories, including equity, debt, hybrid, index, ETFs, and solution-oriented funds. This allows investors to access different market segments and risk-return profiles through a regulated investment structure.

Growing Investor Adoption

India’s mutual fund industry AUM rose from ₹14.22 lakh cr in April 2016 to ₹81.92 lakh cr in April 2026. The growth reflects rising retail participation, digital access, and broader awareness of mutual fund investing over the last decade.

Risks of Investing in Mutual Funds For Beginners

Market Risk

Mutual fund returns are linked to the performance of the underlying investments. Equity funds can decline during stock-market corrections, while debt funds may react to interest-rate changes or credit-related events.

Category Mismatch

Different mutual fund categories carry different levels of risk and return potential. A beginner may focus only on recent returns or low NAVs without understanding the underlying category, portfolio strategy, or volatility profile.

Volatility

Equity-oriented mutual funds can experience sharp short-term fluctuations. For example, the industry’s AUM declined 10.1% month-on-month in March 2026 due to market-driven valuation changes, illustrating how market movements can affect portfolio values.

Cost Impact

Mutual funds charge an expense ratio, which affects investor returns over time. In passive funds, the tracking difference is also relevant because it measures how closely the fund tracks its benchmark index.

Risk Level Differences

Mutual funds are classified across different SEBI Riskometer levels ranging from low to very high risk. This highlights that not all mutual funds behave similarly, even though they belong to the same broader investment category.

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Factors to Consider Before Investing in Mutual Funds For Beginners

Fund Category

The category of the fund plays a major role in determining its risk-return profile. Equity funds, debt funds, hybrid funds, and index funds can behave very differently across market conditions.

Riskometer

SEBI’s Riskometer gives a standard indication of the scheme’s risk level. This helps investors understand whether the fund falls under low, moderate, high, or very high risk categories.

Expense Ratio

The expense ratio represents the annual cost of managing the fund. Since these costs are deducted from the portfolio, they directly affect the investor’s net returns over time.

Performance Consistency

Short-term returns may not fully reflect the fund’s behaviour across market cycles. Long-term consistency, drawdowns, and portfolio stability can provide a better context while evaluating a scheme.

Portfolio Role

Mutual funds are often assessed based on the role they play within the broader portfolio, such as growth, income generation, diversification, or liquidity management.

Fund Size and Liquidity

AUM can indicate the scale and adoption of a scheme. India’s mutual fund industry AUM stood at ₹81.92 lakh cr as of April 2026, reflecting the broader expansion of the country's mutual fund ecosystem.

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

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.
Disclaimer: NRI mutual fund investments may be subject to FEMA rules, tax laws, and country-specific restrictions. This information is for educational purposes only.
How much money can I invest in mutual funds?
There is no limit to investing in low-expense-ratio mutual funds. But pick a fund based on your investment goals, risk appetite, and performance. Also, ensure you have left some money for emergency funds.
Disclaimer: The amount invested in mutual funds depends on the scheme, investment mode, and individual financial situation. This is not a recommendation.
Do we need a demat account for mutual fund investment plans for beginners?
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.
How to invest in mutual funds for beginners?
Here’s how you can invest in mutual funds for beginners:
1. Launch Tickertape Mutual Fund Screener.
2. Select the mutual funds for beginners that aligns with your investment goals.
3. Click on “Place Order” and select the option “SIP” or "Lumpsum". Enter the amount and confirm “OK”
Your order will be placed.
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.
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.
How to choose mutual funds for beginners?
Beginners can choose mutual funds by checking the fund category, risk level, expense ratio, portfolio strategy, and consistency across market cycles. It also helps to compare funds using the Tickertape Mutual Fund Screener, which offers multiple filters for analysing returns, risk, category, and other key mutual fund parameters.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
How to invest in SIP for beginners?
Here’s how you can identify and invest in the top SIPs in mutual funds -
1. Launch Tickertape Mutual Fund Screener.
2. Sort out the top SIP Plans based on over 50 fundamental and technical filters that align with your investment thesis.
3. After that, click on “Place Order” to invest in the mutual fund.

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.