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Top 5 Mutual Funds for Beginners in India


Investing in mutual funds is an excellent way for beginners to dip their toes into the world of financial markets. However, with a plethora of options available, selecting the right mutual fund can be a daunting task. In this guide, we’ve compiled a list of the top 5 mutual funds for beginners in India for 2024, spanning equity, debt, and hybrid categories.

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Equity Mutual Funds

1. Quant Small Cap Fund

This small-cap gem has consistently delivered impressive returns, boasting noteworthy 5-year and 3-year Compound Annual Growth Rates (CAGR). Small-cap funds, though riskier, have the potential for substantial growth, making Quant Small Cap Fund an exciting option for those seeking higher returns.

Also Read: Managing Your Emotions and Behavior in the Stock Market

2. Quant Infrastructure Fund

For investors interested in sectoral exposure, the Quant Infrastructure Fund focuses on the infrastructure sector. With a track record of solid performance, it provides a unique avenue for capitalizing on the growth potential within this specific industry.

3. SBI Tax Advantage Fund-III

As an Equity Linked Savings Scheme (ELSS), SBI Tax Advantage Fund-III not only offers the potential for capital appreciation but also provides tax benefits under Section 80C of the Income Tax Act. This dual advantage makes it an attractive option for tax-conscious investors.

Also Read: How to Activate Domestic E-Commerce on Your SBI Debit Card

4. Quant Tax Plan

Similar to SBI Tax Advantage Fund-III, Quant Tax Plan is another ELSS that combines tax benefits with robust performance metrics. It provides investors with a tax-efficient way to participate in the equity markets while enjoying potential capital gains.

5. Nippon India Small Cap Fund

Known for its robust returns, the Nippon India Small Cap Fund focuses on the small-cap segment. While small-cap investments can be volatile, they also offer the potential for substantial growth, making this fund suitable for investors with a higher risk tolerance.

Also Read: How to Reduce loan Burden in India

Debt Mutual Funds

1. Nippon India Nivesh Lakshya Fund

For investors seeking stability and regular income, the Nippon India Nivesh Lakshya Fund, a long-duration fund, is a prudent choice. Long-duration funds are less sensitive to interest rate changes, providing a relatively stable income stream.

2. Aditya Birla SL Medium Term Plan

Balancing risk and return, the Aditya Birla SL Medium Term Plan falls within the medium duration category. This fund is suitable for investors looking for a middle ground between the stability of long-duration funds and the potential for higher returns.

Also Read: How to manage loans in India

3. DSP G-Sec Fund

Investors with a preference for government securities should consider the DSP G-Sec Fund. Focused on short and mid-term government securities, this gilt fund provides a low-risk option with the backing of sovereign securities.

4. SBI Magnum Gilt Fund

Another gilt fund, the SBI Magnum Gilt Fund, offers a secure investment avenue through short and mid-term government securities. This fund is ideal for conservative investors looking for stability and capital preservation.

5. Bandhan G-Sec-Invest

With a focus on short and mid-term government securities, the Bandhan G-Sec-Invest fund strikes a balance between safety and potential returns. It’s a suitable option for investors seeking stability with a slightly higher risk appetite.

Hybrid Mutual Funds

1. Quant Multi Asset Fund

For a diversified approach across multiple asset classes, the Quant Multi Asset Fund is an excellent choice. This fund allocates investments across equities, debt, and other instruments, providing a balanced and diversified portfolio.

2. Quant Absolute Fund

Categorized as an aggressive hybrid fund, the Quant Absolute Fund seeks to maximize returns by investing in a mix of equities and debt instruments. This strategy makes it suitable for investors with a moderate risk appetite.

3. Bank of India Mid & Small Cap Equity & Debt Fund

This aggressive hybrid fund from Bank of India combines exposure to mid and small-cap equities with debt instruments. It’s designed for investors seeking a balance between growth and stability in their portfolio.

4. ICICI Pru Equity & Debt Fund

Offering a blend of equity and debt, the ICICI Pru Equity & Debt Fund provides a balanced approach to capital appreciation and income generation. It’s suitable for investors with a medium risk tolerance.

5. ICICI Pru Multi-Asset Fund

As a multi-asset allocation fund, the ICICI Pru Multi-Asset Fund diversifies across equities, debt, and other asset classes. This fund is ideal for investors looking for a well-rounded and diversified investment strategy.


Additional Recommendations

In addition to the above, consider the following mutual funds for their unique features and strong performance:

  1. Canara Robeco Equity Tax Saver Fund
  2. Motilal Oswal ELSS Tax Saver Fund Direct Growth
  3. DSP Tax Saver Fund
  4. Mirae Asset Tax Saver Fund
  5. Kotak Tax Saver Fund

Before making any investment decisions, it’s crucial to assess your financial goals, risk tolerance, and investment horizon. Consulting with a financial advisor can provide personalized guidance tailored to your specific needs. Keep in mind that past performance is not indicative of future results, and market conditions can change. Happy investing!

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