Top Mutual Funds to Consider for 2026 Investments

1. Which type of mutual fund is best for beginners?

Due to their lower volatility and consistent returns, large-cap or index funds are generally suggested for beginners.

2. Is SIP better than a lump-sum investment?

SIPs help most investors avoid market-timing risk and promote regular investing.

3. How long should one stay invested in mutual funds?

Equity mutual funds usually need at least 5 to 7 years, or even longer, for substantial growth and diversification of risk.

4. Are small-cap funds safe?

They offer higher returns but also carry higher risk. Only long-term, aggressive investors are acceptable.

5. Can mutual funds help with tax savings?

To answer the question, ELSS mutual funds offer tax benefits under Section 80C, with a 3-year compulsory lock-in period.