Mutual funds are one of the best investment options for beginners in India due to their simplicity, professional management, and potential for high returns. Whether you’re investing for long-term wealth, short-term goals, or tax saving, there are beginner-friendly mutual funds suited to every need.
Here’s a curated list of the top mutual funds for beginners in India in 2025, offering strong past performance, consistent returns, and easy entry with SIPs starting at just ₹500.
📈 1. Axis Bluechip Fund – Direct Plan (Large Cap Fund)
- 1-Year Return (2024): ~14%
- Type: Equity – Large Cap
- Minimum SIP: ₹500/month
- Why It’s Best for Beginners:
Axis Bluechip Fund invests in top-performing large-cap companies like Infosys, HDFC Bank, and Reliance. It’s low-risk and ideal for first-time investors seeking stability with decent returns.
📈 2. Parag Parikh Flexi Cap Fund
- 1-Year Return (2024): ~18%
- Type: Flexi Cap (Multi-Cap)
- Minimum SIP: ₹1,000/month
- Why It’s Great:
A diversified fund investing in both Indian and international stocks (like Alphabet, Meta). This fund suits beginners looking for long-term growth with geographical diversification.
📈 3. Mirae Asset Emerging Bluechip Fund
- 1-Year Return (2024): ~20%
- Type: Large & Mid Cap
- Minimum SIP: ₹500/month
- Why It’s Great for Young Investors:
This fund provides a mix of stability and aggressive growth by investing in both established and growing companies. Best for beginners willing to stay invested for 5+ years.
📈 4. SBI Small Cap Fund
- 1-Year Return (2024): ~25%
- Type: Small Cap Fund
- Minimum SIP: ₹500/month
- Why It’s High-Risk/High-Reward:
If you’re a beginner with a slightly higher risk appetite, this fund can deliver excellent long-term returns. However, expect more volatility than large-cap funds.
📈 5. HDFC Index Fund – Nifty 50 Plan
- 1-Year Return (2024): ~12%
- Type: Index Fund
- Minimum SIP: ₹500/month
- Why It’s Great for Passive Investing:
This fund tracks the Nifty 50 index, making it perfect for beginners who want market-matching returns with minimal fund manager intervention and low fees.
📌 How to Start Investing in Mutual Funds
- Choose a reliable platform like Groww, Zerodha Coin, Paytm Money, or ET Money.
- Complete your KYC online with PAN, Aadhaar, and bank details.
- Select your fund, investment amount, and type (SIP or lump sum).
- Track and stay invested for 3–5 years for compounding benefits.
✅ Final Words
In 2025, mutual funds continue to be an excellent option for beginners in India looking for long-term growth, financial discipline, and wealth creation. Choose funds based on your risk profile and investment goals, and start early for the best results.