This article is especially made for those looking for a step-by-step guide on how to invest in mutual funds for the first time. In the article, we have broken down the complexity of investing for the first time and tried to make it easily understandable for you.
A mutual fund pools money from multiple investors and invests it in stocks, bonds, or other securities. The fund is managed by professional fund managers, so you don’t need to track the market daily.
For beginners in India, mutual funds are popular because:
Mutual Funds for Beginners: How to invest in mutual funds for first time?
Step 1: Set your financial goal first
Before investing, ask yourself:
Clear goals help you choose the right category instead of randomly selecting “best mutual fund in India.
Step 2: Complete your KYC
To invest in mutual funds in India, you must complete KYC (Know Your Customer). For that, you need:
You can undergo online KYC for mutual funds through investment sites or the fund houses’ sites themselves. It only takes a few minutes of your time.
Step 3: Choose right type of mutual fund
This is where most beginners get confused.
When starting your first SIP, it is always advised that you start with a large cap or flexi cap index fund for your investment.
Step 4: Decide between SIP and lump sum
This is one of the most searched queries: SIP vs lump sum – which is better?
Step 5: Direct vs regular plan
Another common Google search: Direct vs regular mutual fund difference.
If you understand basic investing, direct plans can help you save on expense ratios.
Step 6: Check key factors before investing
Before selecting a fund, check:
Don’t invest just because it’s trending under ‘top mutual funds 2026’
Minimum amount to invest in mutual funds
One of the most searched questions is: ‘What is the minimum amount to invest in mutual funds?’
Mutual funds are market-linked investments. Returns are not guaranteed. However:
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
