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I am new to mutual funds. How should I invest?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Updated: Sep 25, 2019, 12.43 PM IST
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I am 28 years old. I am new to mutual funds. I want to invest Rs 2,000 each month through multiple SIPs. I want to take moderate risk. Which mutual funds should I select? What type of return can I expect? What period should I invest?
-Krishna Samanta


First, if you are new to mutual funds and do not understand much about investing in mutual funds, you should seek the help of a mutual fund advisor. New investors need a lot of personalised advice and reassurances during the initial years of their investment journey. Only a mutual fund advisor near you would be able to provide such service. Invest for a few years and gain confidence and experience before starting to invest on your own.

We have seen that many new investors tend to panic and decide to discontinue their investment during a troubled phase in the market.

You should identify your financial goals, and start investing to achieve them. For short-term goals, you should invest in debt mutual funds and bank deposits. You may consider investing in equity schemes to achieve long-term goals.

Mutual fund advisors typically recommend multi cap mutual funds to equity investors with a moderate risk appetite. If the investor wants to diversify and bring down the overall risk in the portfolio, s/he can take some exposure to large cap schemes.

Finally, you wouldn’t need multiple SIPs. Since you are investing a modest sum, you can invest the money in a multi cap mutual fund with a long performance record. As said before, consult a mutual fund advisor before investing.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

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