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Best Mutual Funds for Beginners 2023

Since the start of the worldwide pandemic, almost everyone has started to pay closer attention to their finances. As a result, many of you continue to look for practical strategies and options to invest your hard-earned money wisely. While many investment options are available today, mutual funds have become famous for many people, particularly the millennial generation. Here is the list of the best mutual fund for beginners in 2023. 

What is Mutual Fund?

An investment vehicle known as a mutual fund is a collection of stocks and bonds professionals manage from an asset management company. Investors put their money in various Mutual Funds unit types based on their level of risk tolerance and the length of their investment.

Mutual funds have also received a lot of attention due to their many benefits. They allow a diverse investment portfolio and provide an affordable way to save for retirement. Additionally, they assist in the achievement of short- and long-term financial goals, and, most importantly, provide active risk management. Now, Let’s jump to the best beginner mutual funds.

List of Best Mutual Funds for Beginners

 There are various best mutual funds for beginners that we will discuss below

1. DSP Tax Saver Fund

DSP Mutual Fund has introduced the DSP Tax Saver Direct Plan-Growth, an equity mutual fund program and investing in mutual funds for beginners. On December 16, 1996, the plan was made available to Investors. The Scheme aims to produce a diversified portfolio of medium- to long-term capital appreciation. It is one of the best mutual funds for beginners.

2. Kotak Tax Saver Fund

Kotak Mahindra Mutual Fund presented the equity mutual fund Kotak Tax Saver Fund Direct-Growth. On August 5, 1994, the best mutual fund for beginners was made available to Investors. The Scheme seeks long-term capital appreciation through a diverse portfolio of equity and equity-related securities.

3. SBI Hybrid Equity Fund

SBI Mutual Fund has introduced the hybrid mutual fund SBI Equity Hybrid Fund Direct Plan-Growth. It is the best mutual fund for beginners On June 29, 1987, it was available to investors. The plan aims to give investors long-term capital growth in addition to the liquidity of an open-ended program.

4. Edelweiss Aggressive Hybrid Fund

Edelweiss Mutual Fund introduced the best beginner mutual fund called Edelweiss Aggressive Hybrid Fund Direct-Growth. On April 30, 2008, it was available to Investors.

5. Mirae Asset Tax Saver Fund

On April 26, 2019, the best mutual fund for beginners, Equity Mutual Fund Scheme introduced Mirae Asset Tax Saver Fund Direct-Growth. An ELSS fund helps investors build long-term wealth while also saving on taxes. 

So if you want to park your money in an investment for more than three years, Mirae Asset Tax Saver Fund Direct-Growth is the best option.

6. Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Tax Saver Direct-Growth is among the best mutual funds for beginners. This Scheme was made available to investors on December 19, 1987. 

The program seeks to achieve long-term capital appreciation by predominantly investing in equities. These best beginner mutual funds may also invest in foreign equity markets like ADRs/GDRs in addition to primary and secondary market investments.

7. ICICI Prudential Equity & Debt Fund

ICICI introduced the best mutual fund for beginners, ICICI Prudential Equity & Debt Fund Growth on October 12, 1993. 

The Scheme aims to produce both current income and long-term capital growth. It makes portfolio investments in fixed-income and money market securities, as well as equities and related securities.

8. Aggressive Hybrid Fund Baroda BNP Paribas

By investing in a diverse portfolio of equity-related and fixed-income ways, the Scheme aims to produce income and capital appreciation. The Aggressive Hybrid Fund Baroda BNP Paribas Direct-Growth is the best beginner mutual fund. On April 15, 2004, it was made available to the Investors.

Conclusion

Moreover, mutual funds are one of the best investment tools for accumulating wealth and reducing taxes. Experts advise choosing the best mutual funds for beginners based on suitability before making long-term investment plans. Managing your assets and making wise financial decisions takes time, skill, and effort. 

Unfortunately, many beginners make decisions for the best mutual fund for beginners based on the random market information they receive because they need more financial knowledge than an analysis of the actual market situation.

Best Mutual Fund for Beginners – FAQs 

What is the operation of mutual funds?

Ans. The best mutual fund for beginners is a collective fund created by collecting investor money. After then, this money is invested in a range of securities. Investors divide the revenue received in the form of returns proportionately to each investor’s units. Professionals with in-depth industry knowledge manage these funds.

How much money must you put into a mutual fund plan as a minimum investment?

Ans. The sort of fund will determine this. The minimum contribution used to be between Rs. 500 and Rs. 5000, but the best mutual fund for beginners companies now allows investors to start contributing with just Rs. 100 to draw in more customers. 

Is the best mutual fund for beginners sufficiently liquid?

Ans. Liquidity is the ease with which an asset can be converted into cash. For example, an extremely liquid asset is a mutual fund. Whether returns are beneficial or not, you can leave a scheme and have your money monetized in a short amount of time.

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