If you are new to investing and want to find safe mutual fund investments in 2025 that can give 15% or higher returns, this guide is for you. Mutual funds are one of the best ways to invest in India, especially for beginners who want high returns with low risk over time.
In this guide, we will look at the Top Mutual Funds for Beginners in 2025 giving over 15% annual returns, how they work, and why they are good options for first-time investors. We will also give some simple tips to help you make smart choices and avoid common mistakes.
Why Choose Mutual Funds in 2025?
As the Indian economy keeps growing and more people learn about investing, mutual funds are becoming a popular choice. Here is why they are a good option for investment:
- Diversification: Your money is invested in many different stocks and sectors, which reduces the risk.
- Professional Management: Expert fund managers take care of your investments.
- Affordable: You can start with just ₹500 per month through SIPs.
- Compounding Benefits: Your returns are reinvested, helping you earn even more over time.
What Makes a Mutual Fund “Safe” for Beginners?
When we say a mutual fund is “safe”, it doesn’t mean there is no risk but it just means the risk is lower. These funds usually show less ups and downs and give steady returns over time. Mutual funds that are considered safer for beginners often have:
- A stable long-term track record
- Experienced and strong fund managers
- A well-diversified portfolio
- Good ratings from agencies like CRISIL or Morningstar.
These features make them a better choice for first-time mutual fund investors.
Top Mutual Funds for Beginners in 2025 with Steady 15% Returns
Here are five of the best-performing mutual funds in 2025 that gave more than 15% returns. These are good options for beginner investors looking for long-term financial growth.
1. Quant Small Cap Fund
- This is one of the top mutual funds in the small-cap category, with a 3-year CAGR of around 32% and expense ratio of 0.66%.
- It invests in small companies that have high growth potential. The fund follows an active strategy where the team changes stocks based on market behavior.
- It is best for investors who can stay invested for 5+ years and don’t mind short-term ups and downs of the market.
2. Nippon India Small Cap Fund
- This fund has a strong 5-year CAGR of around 26% with the expense ratio of 0.65% – 0.68.
- It holds more than 100 small-cap stocks, which helps in reducing risk by spreading investments across different companies.
- This fund has done well in different market conditions and has a disciplined investment style, making it a good choice for long-term SIP investors.
3. Canara Robeco Emerging Equities Fund
- This large and mid-cap mutual fund offers a mix of growth and stability, with a 3-year CAGR of over 18% and expense ratio of around 0.57%.
- It invests in both big and mid-sized companies, so it is less risky than pure small-cap funds.
- It follows a strategy that picks companies with strong financials and is managed by an experienced team. It is ideal for new investors who want moderate risk and steady returns.
4. Parag Parikh Flexi Cap Fund
- This flexi-cap fund invests in both Indian and international stock markets, giving globe diversification.
- It has given a 5-year CAGR of around 19% and performs better than many other funds due to its long-term, low loss rate strategy.
- It has an expense ratio of around 0.63%.
- The fund picks quality companies and holds them for the long term. It is a good option for beginners who want some global exposure with low risk.
5. SBI Contra Fund
- This mutual fund uses a contrarian approach, in which it invests in undervalued sectors or companies that others may be avoiding.
- It has delivered a 3-year CAGR of around 22% and often sees strong returns when markets recover.
- It also has an expense ratio of 0.63%.
- This fund is based on deep research and long-term thinking. It is a good pick for beginners who prefer value investing and are patient for long-term growth.
SIP vs. Lump Sum – What Should Beginners Choose?
If you are new to investing, Systematic Investment Plans (SIPs) are a smart and safe way to begin. Instead of investing a big amount all at once, which is called Lump Sum, SIPs let you invest a small fixed amount every month.
SIPs are helpful because:
- You don’t need to worry about the perfect time to invest and this reduces the market timing risk.
- You build a habit of saving and investing regularly, which creates financial discipline.
- You buy more units when prices are low and fewer when prices are high – this is called rupee cost averaging and it helps balance out market ups and downs.
You can start with just ₹1000 per month in any of the funds listed above and stay invested for at least 3-5 years.
Things to Check Before You Invest
Before choosing any mutual fund, make sure to check these:
- Fund History: See how the fund has done in the past 3–5 years.
- Risk Level: High returns usually come with high risk. Know what you are comfortable with.
- Fund Manager Experience: A good and experienced fund manager can help the fund do better over time.
- Expense Ratio: Lower expense ratio means you get more returns.
- AUM (Asset Under Management): Funds with more AUM are usually more stable.
Useful Tips for Mutual Fund Beginners
- Always try to go for direct plans, because they have a lower expense ratio than regular plans.
- Don’t switch funds too often and give you investment time to grow.
- Do a review annually by checking once a year of your investment funds.
- Use trusted platforms like Groww, Zerodha Coin, Paytm Money, or the fund’s AMC website.
Always remember, past performance doesn’t guarantee future returns. Mutual funds involve market risks. Always read the scheme-related documents carefully or talk to a certified financial advisor.
Conclusion
If you are new to investing, mutual funds offering 15%+ returns in 2025 can help you grow your money in the long run. By picking funds with a good past record and lower risk, and investing regularly through SIPs, you can create a safe and rewarding portfolio.
Start today – invest in small amounts, stay consistent, and let the power of compounding grow your wealth over time.
FAQs
Can mutual funds give guaranteed 15% returns?
No, mutual fund returns are not guaranteed because they mainly depend on the market condition. But funds with good past performance may keep doing well if you stay invested for the long time.
Are small-cap mutual funds safe for beginners?
Small-cap mutual funds can give high returns but also have high ups and downs. Beginners can invest through SIPs and stay invested for 5 years or more to lower the risk.
How much should I invest in mutual funds monthly?
You can start investing in mutual funds with ₹500 to ₹5,000 per month, based on your budget. You can increase the amount later as your income grows.
Which is better: SIP or Lump Sum?
SIP is better for beginners because it spreads out your investment over time. It also helps avoid investing a big amount at the wrong time and give you the benefit of rupee cost averaging.
Do I need a Demat account to invest in mutual funds?
No, you don’t need a Demat account to invest in mutual funds. You can easily invest through mutual fund apps or AMC websites.