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How to Invest in a Mutual Fund for Beginners

Updated on September 1, 2025 , 13008 views

How to Invest in a Mutual Fund for Beginners? Newbies are always confused about how to invest in Mutual Fund. Though Mutual Fund is a good investment option, there are various questions that run into their mind related to Mutual Fund basics, best mutual funds for beginners, having an understanding about Mutual Funds and much more. In brief, Mutual Funds are an investment avenue in which invests the money deposited by numerous investors in various financial instruments. Mutual Funds are one of the prominent avenues with many individuals choosing it. These schemes help individuals to achieve their objectives. So, let us understand the various aspects of Mutual Funds through this article.

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Overview of Mutual Fund Basics

To begin with, let us first understand what exactly is a Mutual Fund. In short words, Mutual Fund is an investment avenue which is formed when a number of individuals sharing a common objective of trading in shares and Bonds come together and invest their money. These individuals get units of the Mutual Fund against the money invested and are known as unitholders. The company managing Mutual Fund schemes are known as Asset Management Company. The person-in-charge of a Mutual Fund scheme is known as Fund Manager. Mutual Fund Industry in India is well-regulated with Securities and Exchange Board of India (SEBI) being its regulator. SEBI forms the framework within the boundaries of which Mutual Fund companies function.

How to Choose Best Mutual Funds for Beginners

If you are new to Mutual Fund investment, you should be very careful while choosing the scheme. Choosing an improper scheme can result in losses and eat away your investments. So, let us look at the process of how to choose best Mutual Funds for Beginners.

1. Determine the Investment Objective

Any investment is done to accomplish a particular objective, for example, purchasing a house, purchasing a vehicle, planning for higher education, and much more. Therefore, determining the investment objective helps to determine various parameters.

2. Assess Your Investment Tenure

After determining the investment objective, the next parameter to be determined is the investment tenure. Determining the tenure helps on to decide which category of schemes can be chosen for investment. For instance, if the investment tenure is low then you can choose Debt fund and if the investment tenure is high; then you can choose Equity Funds.

3. Decide Your Expected Return & Risk Appetite

You also need to determine the expected return and risk-appetite. Determining the expected return and risk-appetite also act as a guideline to deciding on the type of the scheme.

4. Assess the Scheme’s Performance & Fund House’s Credentials

Post deciding on the various factors such as returns and risk-appetite you should shift your focus on the performance of the scheme. Here, you should check the fund age, its previous track record, and other related parameters. Along with the scheme, you should also check on the credentials of the fund house. Moreover, also check the credentials of the fund manager managing the scheme.

5. Review Your Investments Timely

Once invested, individuals should not just a back seat. Instead, you should review your investments timely and rebalance your portfolio timely. This will help you to earn effectively.

Best Mutual Fund Schemes for Beginners: Types of Mutual Fund Schemes

Mutual Fund schemes designed to suit the diverse requirements and preferences of individuals. So, let us look at some of the basic Mutual Fund categories.

Equity Funds

Equity funds are the schemes that invest the accumulated pool of money in equity-related instruments. Various categories of equity funds include Large cap funds, mid cap funds, and Small cap funds. Beginners need to do a proper analysis before Investing in equity schemes. They can invest in equity funds through SIP mode. Even if they choose to invest in equity funds, they can choose to invest in large cap funds. Some of the Best Large Cap Funds that can be chosen for investment include:

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
Nippon India Large Cap Fund Growth ₹90.9686
↑ 0.54
₹44,1652.716.3119.323.418.2
ICICI Prudential Bluechip Fund Growth ₹109.96
↑ 0.46
₹71,788214.1-0.218.12116.9
HDFC Top 100 Fund Growth ₹1,128.57
↑ 7.03
₹38,1171.611-3.91620.411.6
JM Core 11 Fund Growth ₹19.6561
↑ 0.10
₹2842.813-718.619.124.3
Aditya Birla Sun Life Frontline Equity Fund Growth ₹522.33
↑ 2.07
₹30,2351.213.9-1.81518.815.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryNippon India Large Cap FundICICI Prudential Bluechip FundHDFC Top 100 FundJM Core 11 FundAditya Birla Sun Life Frontline Equity Fund
Point 1Upper mid AUM (₹44,165 Cr).Highest AUM (₹71,788 Cr).Lower mid AUM (₹38,117 Cr).Bottom quartile AUM (₹284 Cr).Bottom quartile AUM (₹30,235 Cr).
Point 2Established history (18+ yrs).Established history (17+ yrs).Oldest track record among peers (28 yrs).Established history (17+ yrs).Established history (23+ yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: High.Risk profile: Moderately High.
Point 55Y return: 23.45% (top quartile).5Y return: 20.96% (upper mid).5Y return: 20.37% (lower mid).5Y return: 19.13% (bottom quartile).5Y return: 18.84% (bottom quartile).
Point 63Y return: 19.28% (top quartile).3Y return: 18.10% (lower mid).3Y return: 16.03% (bottom quartile).3Y return: 18.56% (upper mid).3Y return: 14.99% (bottom quartile).
Point 71Y return: 1.03% (top quartile).1Y return: -0.18% (upper mid).1Y return: -3.93% (bottom quartile).1Y return: -7.04% (bottom quartile).1Y return: -1.79% (lower mid).
Point 8Alpha: 0.61 (lower mid).Alpha: 1.58 (top quartile).Alpha: -2.13 (bottom quartile).Alpha: -4.99 (bottom quartile).Alpha: 1.34 (upper mid).
Point 9Sharpe: -0.37 (upper mid).Sharpe: -0.35 (top quartile).Sharpe: -0.64 (bottom quartile).Sharpe: -0.75 (bottom quartile).Sharpe: -0.38 (lower mid).
Point 10Information ratio: 1.84 (top quartile).Information ratio: 1.50 (upper mid).Information ratio: 0.96 (lower mid).Information ratio: 0.40 (bottom quartile).Information ratio: 0.80 (bottom quartile).

Nippon India Large Cap Fund

  • Upper mid AUM (₹44,165 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 23.45% (top quartile).
  • 3Y return: 19.28% (top quartile).
  • 1Y return: 1.03% (top quartile).
  • Alpha: 0.61 (lower mid).
  • Sharpe: -0.37 (upper mid).
  • Information ratio: 1.84 (top quartile).

ICICI Prudential Bluechip Fund

  • Highest AUM (₹71,788 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.96% (upper mid).
  • 3Y return: 18.10% (lower mid).
  • 1Y return: -0.18% (upper mid).
  • Alpha: 1.58 (top quartile).
  • Sharpe: -0.35 (top quartile).
  • Information ratio: 1.50 (upper mid).

HDFC Top 100 Fund

  • Lower mid AUM (₹38,117 Cr).
  • Oldest track record among peers (28 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 20.37% (lower mid).
  • 3Y return: 16.03% (bottom quartile).
  • 1Y return: -3.93% (bottom quartile).
  • Alpha: -2.13 (bottom quartile).
  • Sharpe: -0.64 (bottom quartile).
  • Information ratio: 0.96 (lower mid).

JM Core 11 Fund

  • Bottom quartile AUM (₹284 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: High.
  • 5Y return: 19.13% (bottom quartile).
  • 3Y return: 18.56% (upper mid).
  • 1Y return: -7.04% (bottom quartile).
  • Alpha: -4.99 (bottom quartile).
  • Sharpe: -0.75 (bottom quartile).
  • Information ratio: 0.40 (bottom quartile).

Aditya Birla Sun Life Frontline Equity Fund

  • Bottom quartile AUM (₹30,235 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 18.84% (bottom quartile).
  • 3Y return: 14.99% (bottom quartile).
  • 1Y return: -1.79% (lower mid).
  • Alpha: 1.34 (upper mid).
  • Sharpe: -0.38 (lower mid).
  • Information ratio: 0.80 (bottom quartile).

Debt Funds

These schemes invest their corpus in fixed Income instruments. Debt funds are a good option for short and medium term and their prices fluctuate less as compared to equity funds. For beginners, debt funds are one of the good Mutual Funds to start with. The risk appetite of these schemes are comparatively lower than equity funds. Some of the best Mutual Funds for beginners under debt category are:

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
DSP Credit Risk Fund Growth ₹49.9485
↑ 0.03
₹2080.712.421.914.67.86.91%2Y 1M 6D2Y 10M 10D
Franklin India Credit Risk Fund Growth ₹25.3348
↑ 0.04
₹1042.957.511 0%
Aditya Birla Sun Life Credit Risk Fund Growth ₹22.6459
↑ 0.01
₹1,0231.85.316.110.311.97.6%2Y 29D3Y 29D
Aditya Birla Sun Life Medium Term Plan Growth ₹40.236
↑ 0.02
₹2,7440.94.812.79.210.57.44%3Y 6M 18D4Y 9M 4D
Invesco India Credit Risk Fund Growth ₹1,945.07
↑ 1.34
₹1520.55.59.49.17.36.79%2Y 6M 18D3Y 5M 23D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Credit Risk FundFranklin India Credit Risk FundAditya Birla Sun Life Credit Risk FundAditya Birla Sun Life Medium Term PlanInvesco India Credit Risk Fund
Point 1Lower mid AUM (₹208 Cr).Bottom quartile AUM (₹104 Cr).Upper mid AUM (₹1,023 Cr).Highest AUM (₹2,744 Cr).Bottom quartile AUM (₹152 Cr).
Point 2Oldest track record among peers (22 yrs).Established history (13+ yrs).Established history (10+ yrs).Established history (16+ yrs).Established history (11+ yrs).
Point 3Top rated.Rating: 1★ (bottom quartile).Not Rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.
Point 51Y return: 21.88% (top quartile).1Y return: 7.45% (bottom quartile).1Y return: 16.08% (upper mid).1Y return: 12.72% (lower mid).1Y return: 9.43% (bottom quartile).
Point 61M return: 0.08% (lower mid).1M return: 0.91% (top quartile).1M return: 0.27% (upper mid).1M return: -0.07% (bottom quartile).1M return: 0.02% (bottom quartile).
Point 7Sharpe: 1.64 (lower mid).Sharpe: 0.29 (bottom quartile).Sharpe: 2.49 (upper mid).Sharpe: 2.94 (top quartile).Sharpe: 1.44 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.91% (lower mid).Yield to maturity (debt): 0.00% (bottom quartile).Yield to maturity (debt): 7.60% (top quartile).Yield to maturity (debt): 7.44% (upper mid).Yield to maturity (debt): 6.79% (bottom quartile).
Point 10Modified duration: 2.10 yrs (lower mid).Modified duration: 0.00 yrs (top quartile).Modified duration: 2.08 yrs (upper mid).Modified duration: 3.55 yrs (bottom quartile).Modified duration: 2.55 yrs (bottom quartile).

DSP Credit Risk Fund

  • Lower mid AUM (₹208 Cr).
  • Oldest track record among peers (22 yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 21.88% (top quartile).
  • 1M return: 0.08% (lower mid).
  • Sharpe: 1.64 (lower mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.91% (lower mid).
  • Modified duration: 2.10 yrs (lower mid).

Franklin India Credit Risk Fund

  • Bottom quartile AUM (₹104 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 7.45% (bottom quartile).
  • 1M return: 0.91% (top quartile).
  • Sharpe: 0.29 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 0.00% (bottom quartile).
  • Modified duration: 0.00 yrs (top quartile).

Aditya Birla Sun Life Credit Risk Fund

  • Upper mid AUM (₹1,023 Cr).
  • Established history (10+ yrs).
  • Not Rated.
  • Risk profile: Moderate.
  • 1Y return: 16.08% (upper mid).
  • 1M return: 0.27% (upper mid).
  • Sharpe: 2.49 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.60% (top quartile).
  • Modified duration: 2.08 yrs (upper mid).

Aditya Birla Sun Life Medium Term Plan

  • Highest AUM (₹2,744 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 12.72% (lower mid).
  • 1M return: -0.07% (bottom quartile).
  • Sharpe: 2.94 (top quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.44% (upper mid).
  • Modified duration: 3.55 yrs (bottom quartile).

Invesco India Credit Risk Fund

  • Bottom quartile AUM (₹152 Cr).
  • Established history (11+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderate.
  • 1Y return: 9.43% (bottom quartile).
  • 1M return: 0.02% (bottom quartile).
  • Sharpe: 1.44 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.79% (bottom quartile).
  • Modified duration: 2.55 yrs (bottom quartile).

Money Market Mutual Funds

Also known as Liquid Funds these schemes invest their fund money in Fixed Income instruments having very short maturity period. Beginners can choose to invest in money market Mutual Funds as it is one of the safe investment avenues. This scheme is suitable for investors whose have idle funds lying in their Bank account and wish to earn more as compared savings bank account. Some of the best money Market Mutual Funds for beginners are:

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Money Market Fund Growth ₹3,124.29
↑ 0.32
₹20,5540.51.64.17.97.76.16%6M 20D6M 20D
Franklin India Savings Fund Growth ₹50.821
↑ 0.01
₹4,0800.51.64.27.97.76.08%5M 26D6M 7D
Nippon India Money Market Fund Growth ₹4,205.36
↑ 0.52
₹22,4610.51.64.27.97.86.22%6M 10D6M 22D
ICICI Prudential Money Market Fund Growth ₹384.466
↑ 0.05
₹36,9420.51.64.27.97.76.1%5M 24D6M 6D
Tata Money Market Fund Growth ₹4,783.65
↑ 0.68
₹41,2350.51.64.17.97.76.16%6M 7D6M 7D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Money Market FundFranklin India Savings FundNippon India Money Market FundICICI Prudential Money Market FundTata Money Market Fund
Point 1Bottom quartile AUM (₹20,554 Cr).Bottom quartile AUM (₹4,080 Cr).Lower mid AUM (₹22,461 Cr).Upper mid AUM (₹36,942 Cr).Highest AUM (₹41,235 Cr).
Point 2Established history (16+ yrs).Oldest track record among peers (23 yrs).Established history (20+ yrs).Established history (19+ yrs).Established history (22+ yrs).
Point 3Top rated.Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Moderately Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 7.92% (top quartile).1Y return: 7.90% (upper mid).1Y return: 7.89% (lower mid).1Y return: 7.89% (bottom quartile).1Y return: 7.85% (bottom quartile).
Point 61M return: 0.47% (top quartile).1M return: 0.46% (bottom quartile).1M return: 0.47% (lower mid).1M return: 0.47% (bottom quartile).1M return: 0.47% (upper mid).
Point 7Sharpe: 3.26 (top quartile).Sharpe: 3.04 (bottom quartile).Sharpe: 3.11 (upper mid).Sharpe: 3.08 (bottom quartile).Sharpe: 3.10 (lower mid).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.16% (upper mid).Yield to maturity (debt): 6.08% (bottom quartile).Yield to maturity (debt): 6.22% (top quartile).Yield to maturity (debt): 6.10% (bottom quartile).Yield to maturity (debt): 6.16% (lower mid).
Point 10Modified duration: 0.56 yrs (bottom quartile).Modified duration: 0.49 yrs (upper mid).Modified duration: 0.53 yrs (bottom quartile).Modified duration: 0.48 yrs (top quartile).Modified duration: 0.52 yrs (lower mid).

UTI Money Market Fund

  • Bottom quartile AUM (₹20,554 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.92% (top quartile).
  • 1M return: 0.47% (top quartile).
  • Sharpe: 3.26 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.16% (upper mid).
  • Modified duration: 0.56 yrs (bottom quartile).

Franklin India Savings Fund

  • Bottom quartile AUM (₹4,080 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.90% (upper mid).
  • 1M return: 0.46% (bottom quartile).
  • Sharpe: 3.04 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.08% (bottom quartile).
  • Modified duration: 0.49 yrs (upper mid).

Nippon India Money Market Fund

  • Lower mid AUM (₹22,461 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.89% (lower mid).
  • 1M return: 0.47% (lower mid).
  • Sharpe: 3.11 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.22% (top quartile).
  • Modified duration: 0.53 yrs (bottom quartile).

ICICI Prudential Money Market Fund

  • Upper mid AUM (₹36,942 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.89% (bottom quartile).
  • 1M return: 0.47% (bottom quartile).
  • Sharpe: 3.08 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.10% (bottom quartile).
  • Modified duration: 0.48 yrs (top quartile).

Tata Money Market Fund

  • Highest AUM (₹41,235 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.85% (bottom quartile).
  • 1M return: 0.47% (upper mid).
  • Sharpe: 3.10 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.16% (lower mid).
  • Modified duration: 0.52 yrs (lower mid).

Balanced Funds

These schemes are also known as hybrid funds. These schemes invest their corpus in both equity and debt funds. Beginners can also choose to prefer in hybrid funds as it helps them to earn regular income along with Capital appreciation. Some of the best Mutual Funds for beginners under Balanced Fund category include:

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
JM Equity Hybrid Fund Growth ₹119.671
↑ 0.46
₹8412.19.9-7.620.120.827
ICICI Prudential Equity and Debt Fund Growth ₹395.35
↑ 1.80
₹44,605313.63.919.524.317.2
ICICI Prudential Multi-Asset Fund Growth ₹762.344
↓ -0.08
₹63,0012.210.67.319.322.716.1
UTI Multi Asset Fund Growth ₹74.7312
↑ 0.36
₹5,9022.511.12.519.115.520.7
BOI AXA Mid and Small Cap Equity and Debt Fund Growth ₹37.8
↑ 0.22
₹1,258-0.717.3-4.618.62325.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryJM Equity Hybrid FundICICI Prudential Equity and Debt FundICICI Prudential Multi-Asset FundUTI Multi Asset FundBOI AXA Mid and Small Cap Equity and Debt Fund
Point 1Bottom quartile AUM (₹841 Cr).Upper mid AUM (₹44,605 Cr).Highest AUM (₹63,001 Cr).Lower mid AUM (₹5,902 Cr).Bottom quartile AUM (₹1,258 Cr).
Point 2Oldest track record among peers (30 yrs).Established history (25+ yrs).Established history (22+ yrs).Established history (16+ yrs).Established history (9+ yrs).
Point 3Rating: 1★ (lower mid).Top rated.Rating: 2★ (upper mid).Rating: 1★ (bottom quartile).Not Rated.
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 20.84% (bottom quartile).5Y return: 24.33% (top quartile).5Y return: 22.69% (lower mid).5Y return: 15.54% (bottom quartile).5Y return: 23.03% (upper mid).
Point 63Y return: 20.05% (top quartile).3Y return: 19.46% (upper mid).3Y return: 19.32% (lower mid).3Y return: 19.06% (bottom quartile).3Y return: 18.62% (bottom quartile).
Point 71Y return: -7.57% (bottom quartile).1Y return: 3.95% (upper mid).1Y return: 7.35% (top quartile).1Y return: 2.50% (lower mid).1Y return: -4.59% (bottom quartile).
Point 81M return: 0.36% (bottom quartile).1M return: 2.09% (top quartile).1M return: 1.92% (upper mid).1M return: 1.91% (lower mid).1M return: 0.48% (bottom quartile).
Point 9Alpha: -7.43 (bottom quartile).Alpha: 2.01 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: -0.92 (bottom quartile).Sharpe: -0.18 (upper mid).Sharpe: 0.14 (top quartile).Sharpe: -0.27 (lower mid).Sharpe: -0.38 (bottom quartile).

JM Equity Hybrid Fund

  • Bottom quartile AUM (₹841 Cr).
  • Oldest track record among peers (30 yrs).
  • Rating: 1★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 20.84% (bottom quartile).
  • 3Y return: 20.05% (top quartile).
  • 1Y return: -7.57% (bottom quartile).
  • 1M return: 0.36% (bottom quartile).
  • Alpha: -7.43 (bottom quartile).
  • Sharpe: -0.92 (bottom quartile).

ICICI Prudential Equity and Debt Fund

  • Upper mid AUM (₹44,605 Cr).
  • Established history (25+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 24.33% (top quartile).
  • 3Y return: 19.46% (upper mid).
  • 1Y return: 3.95% (upper mid).
  • 1M return: 2.09% (top quartile).
  • Alpha: 2.01 (top quartile).
  • Sharpe: -0.18 (upper mid).

ICICI Prudential Multi-Asset Fund

  • Highest AUM (₹63,001 Cr).
  • Established history (22+ yrs).
  • Rating: 2★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 22.69% (lower mid).
  • 3Y return: 19.32% (lower mid).
  • 1Y return: 7.35% (top quartile).
  • 1M return: 1.92% (upper mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.14 (top quartile).

UTI Multi Asset Fund

  • Lower mid AUM (₹5,902 Cr).
  • Established history (16+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 15.54% (bottom quartile).
  • 3Y return: 19.06% (bottom quartile).
  • 1Y return: 2.50% (lower mid).
  • 1M return: 1.91% (lower mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.27 (lower mid).

BOI AXA Mid and Small Cap Equity and Debt Fund

  • Bottom quartile AUM (₹1,258 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 23.03% (upper mid).
  • 3Y return: 18.62% (bottom quartile).
  • 1Y return: -4.59% (bottom quartile).
  • 1M return: 0.48% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: -0.38 (bottom quartile).

Solution Oriented Schemes

Solution oriented schemes are helpful for those investors who wish to create long-term wealth that mainly includes Retirement planning and a child’s future education by investing in Mutual Funds. Earlier, these plans were a part of equity or balanced schemes, but as per SEBI’s new circulation, these funds are separately categorised under solution oriented schemes. Also these schemes used to have a lock-in for three years, but now these funds have a mandatory lock-in of five years.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)
ICICI Prudential Child Care Plan (Gift) Growth ₹328.1
↑ 1.61
₹1,3933.617.42.918.418.816.9
HDFC Retirement Savings Fund - Equity Plan Growth ₹50.243
↑ 0.29
₹6,6120.613.5-2.918.323.918
Tata Retirement Savings Fund - Progressive Growth ₹64.856
↑ 0.43
₹2,085-0.216.1-3.3151621.7
HDFC Retirement Savings Fund - Hybrid - Equity Plan Growth ₹38.364
↑ 0.14
₹1,6730.110.8-1.214.417.314
Tata Retirement Savings Fund-Moderate Growth ₹64.083
↑ 0.39
₹2,1500.314.4-0.914.11519.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryICICI Prudential Child Care Plan (Gift)HDFC Retirement Savings Fund - Equity Plan Tata Retirement Savings Fund - ProgressiveHDFC Retirement Savings Fund - Hybrid - Equity PlanTata Retirement Savings Fund-Moderate
Point 1Bottom quartile AUM (₹1,393 Cr).Highest AUM (₹6,612 Cr).Lower mid AUM (₹2,085 Cr).Bottom quartile AUM (₹1,673 Cr).Upper mid AUM (₹2,150 Cr).
Point 2Oldest track record among peers (24 yrs).Established history (9+ yrs).Established history (13+ yrs).Established history (9+ yrs).Established history (13+ yrs).
Point 3Rating: 2★ (lower mid).Not Rated.Top rated.Not Rated.Rating: 5★ (upper mid).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 18.80% (upper mid).5Y return: 23.94% (top quartile).5Y return: 16.03% (bottom quartile).5Y return: 17.35% (lower mid).5Y return: 14.99% (bottom quartile).
Point 63Y return: 18.41% (top quartile).3Y return: 18.30% (upper mid).3Y return: 15.04% (lower mid).3Y return: 14.45% (bottom quartile).3Y return: 14.15% (bottom quartile).
Point 71Y return: 2.86% (top quartile).1Y return: -2.90% (bottom quartile).1Y return: -3.31% (bottom quartile).1Y return: -1.24% (lower mid).1Y return: -0.87% (upper mid).
Point 81M return: 1.27% (top quartile).1M return: 0.97% (bottom quartile).1M return: 1.02% (upper mid).1M return: 0.39% (bottom quartile).1M return: 1.00% (lower mid).
Point 9Alpha: 0.00 (upper mid).Alpha: -0.66 (bottom quartile).Alpha: 0.22 (top quartile).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: -0.17 (top quartile).Sharpe: -0.49 (bottom quartile).Sharpe: -0.41 (lower mid).Sharpe: -0.50 (bottom quartile).Sharpe: -0.37 (upper mid).

ICICI Prudential Child Care Plan (Gift)

  • Bottom quartile AUM (₹1,393 Cr).
  • Oldest track record among peers (24 yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 18.80% (upper mid).
  • 3Y return: 18.41% (top quartile).
  • 1Y return: 2.86% (top quartile).
  • 1M return: 1.27% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: -0.17 (top quartile).

HDFC Retirement Savings Fund - Equity Plan

  • Highest AUM (₹6,612 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 23.94% (top quartile).
  • 3Y return: 18.30% (upper mid).
  • 1Y return: -2.90% (bottom quartile).
  • 1M return: 0.97% (bottom quartile).
  • Alpha: -0.66 (bottom quartile).
  • Sharpe: -0.49 (bottom quartile).

Tata Retirement Savings Fund - Progressive

  • Lower mid AUM (₹2,085 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 16.03% (bottom quartile).
  • 3Y return: 15.04% (lower mid).
  • 1Y return: -3.31% (bottom quartile).
  • 1M return: 1.02% (upper mid).
  • Alpha: 0.22 (top quartile).
  • Sharpe: -0.41 (lower mid).

HDFC Retirement Savings Fund - Hybrid - Equity Plan

  • Bottom quartile AUM (₹1,673 Cr).
  • Established history (9+ yrs).
  • Not Rated.
  • Risk profile: Moderately High.
  • 5Y return: 17.35% (lower mid).
  • 3Y return: 14.45% (bottom quartile).
  • 1Y return: -1.24% (lower mid).
  • 1M return: 0.39% (bottom quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: -0.50 (bottom quartile).

Tata Retirement Savings Fund-Moderate

  • Upper mid AUM (₹2,150 Cr).
  • Established history (13+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 14.99% (bottom quartile).
  • 3Y return: 14.15% (bottom quartile).
  • 1Y return: -0.87% (upper mid).
  • 1M return: 1.00% (lower mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: -0.37 (upper mid).

Investing in Mutual Funds for Beginners: SIP & Lump Sum Mode

Individuals can invest in Mutual Funds either through SIP or lump sum mode. In SIP or Systematic Investment plan, the investments take place at regular intervals in a small amount. Contrarily, in lump sum mode, a considerable amount is deposited as a one-shot activity. For beginners, it is always preferable to invest through SIP mode. This is because, since the investment amount is small, it does not hamper people’s current budget. SIP is done generally in the context of equity funds in which individuals can earn more if they hold their investment for a longer tenure. In addition, SIP has a lot of advantages such as the Power of Compounding, rupee cost averaging, and disciplined savings habit.

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Understanding Mutual Fund Calculator

mutual fund calculator is also known sip calculator. It is one of the tools that help individuals to determine the SIP amount. This calculator helps individuals to determine the savings amount that they need to today for attaining their future objectives. The calculator also shows how the value of SIP grows over a period of time in a virtual environment.

Online Mutual Funds: Invest Hassle-Free

The advancements in technology have eased out the life of individuals even in terms of investment. Individuals can invest in Mutual Funds through online mode in just a few clicks. People can transact in Mutual Funds at any time and from anywhere through online mode. Individuals opting for online mode can invest in Mutual Funds either through distributors or through the fund house directly. However, it is always advised to invest through Mutual Fund Distributors as individuals can find a number of schemes of various fund houses under one roof.

How to Invest in Mutual Funds Online?

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  2. Complete your Registration and KYC Process

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Conclusion

Thus, from the above points, it can be said that Mutual Funds are one of the prominent investment avenues. However, it is advised that before in any scheme people should understand its modalities completely. In addition, they should ensure whether the scheme’s approach is in-line with their objectives. If required, people can also consult a financial consultant. This will help individuals by ensuring that their investment is safe and paves way for wealth creation.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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