Mutual funds are overseen by fund managers who put your funds in various asset classes to earn profit. Mutual funds are an investment that is one of the best alternatives for everyone, particularly for those who are new to investing. It is a collection of funds pooled from a variety of investors, which is professionally managed by a trust, also known as an asset management corporation (AMC). AMC is also known as an asset management company. AMC is also referred to as a mutual fund house. The fund house employs experts, fund managers, who invest the pooled funds. The pooled funds are invested in various assets such as bonds, equities, corporate bonds, hybrid instruments, and money market instruments, such as CP, CD, and T-bills to earn returns.

Mutual funds are great for investors who do not want to focus on a small number of companies or don’t have the desire or time to study the market but still desire to build wealth. They’re the ideal choice for people just beginning to get into the investing world. The money that is collected by mutual funds is steered by experienced fund managers who adhere to the plan’s stated objectives, so there is less risk of losing. In exchange, the fund house is charged a small amount which is taken out of the investment. We at Cube Wealth suggest you consult a financial professional or a Cube Wealth Coach before investing in any asset.

The following funds are among the top mutual funds that beginners should consider since SIPs that are tax-saving funds and indexes with low risk are appropriate to start with. Once you’ve had some time, when your income grows, it is recommended to seek out a financial advisor or an advisor from Cube Wealth for more information on the best funds in relation to your financial objectives.

ICICI Prudential Bluechip Fund

The ICICI Prudential Bluechip Fund Direct-Growth was launched on January 01st, 2013 and the annual average returns this fund has earned is 6.66 percent since it was established. The fund aims to provide long-term capital appreciation and income distribution to investors through an investment portfolio that is primarily comprised of equity and equity-related securities of large-cap firms.

• Risk: Low
• 1-Year Returns: 10.16%
• 3-Year Returns: 20.82%
• 5-Year Returns: 11.88%
• AUM: Rs35,049.23 crores

Kotak Nifty 50 Index Fund

Its Kotak Nifty 50 Index Fund Direct-Growth has been in existence since June 21st, 2021, and the annual average return that this fund has provided is 4.11 percent since the fund’s inception. The plan aims to replicate the structure of the Nifty 50 Index and generate returns that are comparable to its performance. NIFTY 50 Index, subject to tracking errors.

• Risk: Low
• 1-Year Returns: 8.24%
• 3-Year Returns: NA
• 5-Year Returns: NA
• AUM: Rs251.75 crores

Kotak Tax Saver Fund

This fund Kotak Tax Saver Fund Direct-Growth, was launched on January 01st, 2013, and the annual average return offered by the fund has been 9.64 percent since it was established. The goal of investment for Kotak Tax Saver is to create long-term capital appreciation by utilizing a diversified selection of equity- and equity-related securities. It also allows investors to take advantage of the income tax deduction, in accordance with the applicable time and the time. The plan thus provides the double benefit of growing capital as well as tax savings.

• Risk: High
• 1-Year Returns: 11.84%
• 3-Year Returns: 20.73%
• 5-Year Returns: 13.52%
• AUM: Rs397.10 crores

Quant Tax Plan

The Quant Tax Plan Direct Growth has been in existence since Jan 2013 and the mean annual return offered by the fund has been 8.97 per cent since it was established. The plan aims to create capital appreciation by investing in equity shares that have potential for growth. The other goal is to pay dividends as well as other income.

• Risk: High
• 1-Year Returns: 10.81%
• 3-Year Returns: 40.07%
• 5-Year Returns: 20.98%
• AUM: Rs2,506.48 crores

Kotak Nifty Next 50 Index Fund

This fund Kotak Nifty Next 50 Index Fund Direct Growth has been in existence since March 02nd 2021. The annual average returns this fund provides is 8.24 percent in a single year. The objective of this investment scheme is to reproduce that composition and structure of Nifty Next 50 Index and yield returns in line in relation to performance NIFTY Next 50 Index, with the possibility of tracking errors.

• Risk: Low
• 1-Year Returns: 8.24%
• 3-Year Returns: NA
• 5-Year Returns: NA
• AUM: Rs102.60 crores

Nippon India Nifty Smallcap 250 Index fund

Its Nippon India Nifty Smallcap 250 Index Fund Direct Growth has been in existence since October 16th, 2020. The average annual return offered by the fund is -1.85 percent since the fund’s inception. The purpose for the fund is to offer the same investment returns as the total return of the securities that are expressed in the Nifty Smallcap 250 Index before expenses and errors in tracking. However, there is no guarantee or assurance that the goal of investment in the Scheme is achieved.

• Risk: High
• 1-Year Returns: 2.51%
• 3-Year Returns: NA
• 5-Year Returns: NA
• AUM: Rs397.10 crores

Kotak Bluechip Fund

Its Kotak Bluechip Fund Direct Growth is in existence since January 01st 2013, and the average annual return offered by this fund has been 6.10 percent since it was launched. This scheme aims to provide capital appreciation through an investment portfolio that is primarily equity-related and equity-related securities that fall under the classification of large-cap companies.

• Risk: Low
• 1-Year Returns: 9.04%
• 3-Year Returns: 19.11%
• 5-Year Returns: 11.75%
• AUM: Rs5,256.16 crores

FAQs

• Which one of the mutual funds is ideal to start with?

Ans. An Mutual Fund is a type of investment vehicle which is basically a collection of bonds or stocks that is managed by experts of an asset management company. To begin investing, one should look at the funds mentioned above however the funds that can be contemplated for investment are ICICI Prudential Equity & Debt Fund, Nippon India Liquid Fund, SBI Liquid Fund, HDFC Liquid Fund, Invesco India Liquid Fund, ICICI Prudential Liquid Fund etc.

• What are the best ways for beginners to make money from mutual funds?

Ans. It is crucial to learn about all investment options to help you build more wealth.

You can invest in mutual funds by utilizing the assistance by Our Mutual Fund Advisors to select the best investment plan for your needs. Mutual fund units will be kept in a in the form of dematerialized units. You are able to access purchasing or selling mutual fund units as shares.

 

• How much should a newbie put into mutual funds?

Ans. Yes, you can begin buying mutual fund shares just Rs1000 through Cube Wealth. Cube Wealth app. Cube offers access to selected mutual funds in categories such as International funds, liquid funds credit funds, equity funds ELSS fund, as well as many more. Begin investing now.

• Which is the best SIP for newbies?

Ans. SIP(Systematic Investment Plan) allows investor to control their financial situation and build a cushion of financial security to help them achieve the financial goals of their lives. Some of the SIPs recommended for beginners to invest in are Edelweiss Liquid Fund, DSP Liquidity Fund, PGIM India Liquid Fund Sundaram Liquid Fund, Mahindra Manulife Liquid Fund, Quant Liquid Fund and many more.