1% may not be that significant for an investor’s returns in the present times, but it does become significant in the long run due to the power of compounding. One of the first decisions taken by an investor who is venturing into the world of mutual fund investing for the first time would be the choice of the mutual fund scheme where the investor wishes to invest.

In February 2026, the total assets under management for the Indian Mutual Fund Industry were at Rs. 82 lakh crore. The monthly contributions in SIP had also crossed the mark of Rs. 29,000 crore, with total assets under SIP crossing the mark of Rs. 16.36 lakh crore.​

At the heart of this phenomenal growth lies the silent revolution in how Indians are choosing to invest through online investment apps, which have made direct mutual funds and systematic investment plans available at the fingertips of the beginner investor.

This blog highlights the significance of that one percent difference and some of the top mutual fund investment apps in India.

Why 1% is not just 1%

Before proceeding with the best mutual fund apps for beginners in India, let’s spend a few moments understanding the importance of the difference of 1%. As per the SEBI Mutual Fund Guidelines, a mutual fund can levy some charges for managing the mutual fund scheme. Such charges include sales & marketing costs, transaction costs, registrar costs, and many more. The above costs are charged as a percentage of the daily net assets.

The sum of all the above-mentioned costs is collectively called the Total Expense Ratio (TER). TER is calculated considering the percentage of the average Net Asset Value (NAV) of the mutual fund scheme. The daily net asset value (NAV) published by the mutual fund is disclosed after deducting the above-mentioned expenditures.

This brings us to the 1% difference. In regular plans, there is the involvement of advisors, brokers, or intermediaries, for which regular mutual funds charge a commission fee. Thus, the expense ratio becomes higher by about 0.5% to 1.5%. The direct plans involve the purchase of mutual funds without the involvement of any intermediary, leading to a lower expense ratio and hence the 1% difference in their expense ratios.

Let’s take an example where an individual invests Rs. 1,00,000 in a mutual fund plan, which gives 10% annual return at the end of the year. In regular mutual funds, the expense ratio is 1.5%, thus lowering the net returns by 8.5%. In direct mutual funds, the expense ratio is just 0.5%, giving higher returns of 9.5%.

Thus, the best app for mutual funds SIP would be the one that provides direct mutual fund schemes with no commission fees. Let’s look at some of the best mutual funds apps for beginners in India.

Best mutual fund apps for Beginners in India (2026)

Some of the best mutual fund apps for beginners in India in 2026 are mentioned below:

Dhan

Dhan holds a unique position in the world of mutual fund apps as it provides a direct mutual fund investment experience with zero commission fees, along with other investment products. Dhan is an attractive investment app for a beginner who wants to begin his or her investment journey with SIPs now but may want to switch to F&O or equity trading in the near future. This way, Dhan will allow beginners to invest in their desired products without ever having to change apps.

Dhan provides 1,700+ direct mutual fund schemes with 0% commission fees. Dhan SIPs can be created on a daily, weekly, or monthly basis. Dhan also offers an autopay feature for SIP investments, which means the amount of funds that the investor wants to invest in SIPs will automatically be deducted from his or her bank account on a specified date.

Dhan stands out among other apps due to the presence of various types of calculators provided specifically for beginner mutual fund investors. Dhan offers various types of calculators, such as a SIP calculator, a lump sum calculator, a step-up SIP calculator, an ELSS calculator, an SWP calculator, and an inflation-adjusted SIP calculator, etc., which help beginner investors gauge the implementation of their investment choices before investing.

Groww

Groww is among the go-to choices for new investors buying their first mutual fund SIPs in India. According to the company’s RHP, Groww is now known for being the app where around one-third of new SIPs are made in India. Furthermore, Groww is also considered one of the largest and fastest-growing platforms for investing in India with regard to the number of active users on its platform.

Using Groww, one can invest in the direct mutual funds of all the top asset management companies in India in both SIP and lump sum forms without having to pay any commission fees. Groww provides a one-stop solution to invest, which allows the investor to track their portfolio, view daily and total returns, and even calculate XIRR. With the help of Groww, the investor gets important insights into their mutual fund investments.

Apart from that, Groww also allows the investor to invest in an SIP starting from Rs. 100. The app has a clean UI, which includes cards with details of mutual funds, their risk ratings, categories, and past returns.

Zerodha Coin

Zerodha Coin allows beginner investors to buy and sell direct mutual funds without any commission charges, thus saving up to 1% commission charges. It also enables investment through SIPs with flexible frequencies like weekly, monthly, quarterly, or even every 15 days.

Investors can invest through an automatic step-up SIP, where the SIP investment amount will be automatically increased by a specific percentage every year. This platform is compatible with the Zerodha ecosystem and is thus suitable for both beginner and experienced SIP investors.

Coin allows beginners to invest in mutual funds, but if one day they want to become an equity trader, they can easily do it as part of the same Zerodha ecosystem. Thus, one account will allow them to have access to both the direct mutual funds and the stock market, i.e., they will not have to use two different platforms as their investment horizons expand in the future.

Kuvera

Kuvera has managed to carve out its own unique place in the mutual fund investment industry by focusing on financial planning as well. Kuvera is an online investment platform that offers direct plans at zero commission costs and zero subscription fees. It is incorporated as an investment advisor under the Securities Exchange Board of India.

Kuvera makes investors feel comfortable by helping them in goal planning, fund selection, tax optimisation, etc., by making it easier and simpler for them. With Kuvera, an investor can create their own financial goal, which helps them determine the amount of investment required in a lump sum or SIP form for fulfilling their goal, and also offers recommendations on funds for investors.

To the beginner, they find it easier to invest when they have something to invest in, like something they want to spend money on, like going on vacation, paying for their child’s college, paying for an apartment, retirement plans, etc. This is why the goal-based approach offered by Kuvera is so popular among investors, making it one of the best mutual fund apps for them.

Paytm money

Paytm Money is a user-friendly application that helps one invest in direct mutual funds. It helps in small SIP investments, quick onboarding, and easy payment through UPI. It also helps in goal planning, portfolio tracking, and tax-saving mutual fund investments, making it suitable for beginner investors.

Paytm Money charges 0% commission charges for direct mutual fund investments in various high-performing segments like Equity, Debt, and Hybrid mutual funds. It also offers ELSS mutual funds for tax savings under 80C, which is suitable for salaried investors.

Paytm helps investors in mutual fund investments with lump sum and SIP investments starting from a minimum of Rs. 500. It also offers various advanced features like SIP calculators, portfolio tracking, and comparisons for beginner investors.

Final thoughts

The availability of multiple mutual fund investment apps has made mutual fund schemes easily accessible for beginner investors in the country. Currently, the majority of the mutual fund investment applications charge 0% commission fees for the investment in direct mutual fund schemes.

The significance of the difference between the expense ratios of regular and direct mutual fund investments can be understood by the compounding of this 1% difference. It compounds into a significant amount, which drastically reduces the net returns over the long term, making direct mutual fund schemes an economically viable option for those willing to take up self-investments.

By choosing an appropriate app that aligns with individual investment goals and risk tolerance, beginners can confidently navigate the world of mutual fund investments.