TopFund Rankings

Best Mutual Funds for Beginners 2026

Best mutual funds for first-time investors and beginners in India 2026. Low cost index funds and large cap funds to start your investment journey.

20

Top Funds

Top Ranked by 1-Year Returns

#1

ICICI Prudential NASDAQ 100 Index Fund - Direct Plan - Growth

ICICI Prudential Mutual Fund · Index Funds

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#2

Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund - Direct Plan - Growth

Edelweiss Mutual Fund · Index Funds

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#3

Edelweiss CRISIL IBX AAA Bond NBFC HFC Jun 2027 Index Fund - Regular Plan - Growth Option

Edelweiss Mutual Fund · Index Funds

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#4

Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund - Regular Plan - Growth

Edelweiss Mutual Fund · Index Funds

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#5

Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50: 50 Index Fund - Regular Plan - IDCW Option

Edelweiss Mutual Fund · Index Funds

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#6

Kotak BSE PSU Index Fund - Direct Plan - Growth

Kotak Mahindra Mutual Fund · Index Funds

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#7

HDFC Nifty SDL Oct 2026 Index Fund - Growth Option - Direct Plan

HDFC Mutual Fund · Index Funds

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#8

HDFC Nifty SDL Oct 2026 Index Fund - Growth Option

HDFC Mutual Fund · Index Funds

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#9

HDFC Nifty G-Sec Jun 2027 Index Fund - Growth Option - Direct Plan

HDFC Mutual Fund · Index Funds

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#10

HDFC Nifty G-Sec Dec 2026 Index Fund - Growth Option - Direct Plan

HDFC Mutual Fund · Index Funds

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#11

Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan - IDCW

Edelweiss Mutual Fund · Index Funds

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#12

Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan Growth

Edelweiss Mutual Fund · Index Funds

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#13

HDFC Nifty G-Sec Dec 2026 Index Fund - Growth Option

HDFC Mutual Fund · Index Funds

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#14

Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Regular Plan - IDCW

Edelweiss Mutual Fund · Index Funds

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#15

Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Regular Plan - Growth

Edelweiss Mutual Fund · Index Funds

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#16

HDFC Nifty G-Sec Jun 2027 Index Fund - Growth Option

HDFC Mutual Fund · Index Funds

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#17

HDFC Nifty G-Sec Apr 2029 Index Fund - Growth Option - Direct Plan

HDFC Mutual Fund · Index Funds

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#18

HDFC Nifty G-Sec Apr 2029 Index Fund - Growth Option

HDFC Mutual Fund · Index Funds

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#19

ICICI Prudential Nifty SDL Dec 2028 Index Fund - Direct Plan - Growth

ICICI Prudential Mutual Fund · Index Funds

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#20

HDFC Nifty G-Sec July 2031 Index Fund - Growth Option - Direct Plan

HDFC Mutual Fund · Index Funds

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How to Choose the Best Mutual Funds for Beginners 2026?

When selecting the best mutual fund, look at: Consistent returns (not just 1-year performance), expense ratio (lower is better — even 0.5% difference compounds significantly), fund manager track record, AUM size (very small or very large AUM can be a concern), and alignment with your investment horizon and risk tolerance.

Important: Past returns do not guarantee future performance. Always consider your financial goals and consult a SEBI-registered investment advisor before investing.

Frequently Asked Questions

How much should I invest per month? expand_more

There is no fixed rule. Start with an amount you can consistently invest every month without straining your budget. Even ₹500-₹1,000/month compounded over 10+ years can build significant wealth.

Should I invest in a SIP or lump sum? expand_more

SIP (Systematic Investment Plan) is recommended for most investors as it averages out the purchase cost over time (rupee cost averaging). Lump sum is suitable when markets are significantly undervalued or you have a large amount to invest.

How are returns taxed? expand_more

Equity fund LTCG (held > 1 year) above ₹1 lakh is taxed at 10%. STCG (held < 1 year) is 15%. For ELSS, gains after 3-year lock-in are LTCG. Debt fund gains are taxed per your income tax slab (post-2023).

What is CAGR? expand_more

CAGR stands for Compounded Annual Growth Rate — the rate at which your investment would have grown each year if it had grown at a steady rate. It is the standard way to compare mutual fund returns across different time periods.

* Data is for informational purposes only. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Consult a SEBI-registered investment advisor.