How to invest in a mutual fund for beginners

Glad to know that you want to start investing in mutual funds.

As you are new to mutual funds, we would request you to go through the following section in our website https://www.advisorkhoj.com/mutual-funds... Here you can learn about mutual funds, the various types etc., the advantages of investing in mutual funds and how do mutual funds work.

As you are a beginner, you can invest your lump sum amount in a balanced fund. Read https://www.advisorkhoj.com/principalmf...

ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund, DSP BlackRock Balanced Fund and HDFC Balanced Fund are good performing balanced funds in which you can invest your lump sum amount of Rs 1 Lakh. However, you need not invest in all 4 funds, you can choose any 2 funds to invest.

With regards to your monthly SIPs of Rs 10,000, you can invest in large cap funds. You can invest Rs 5,000 each in two large cap funds. SBI Bluechip Fund, Birla Sun Life Frontline Equity Fund and Kotak Select Focus Fund are among top performing funds in the large cap category.

Please do note that as you are investing in balanced funds and large cap funds, your investment horizon should be minimum 5 years.

Hope you find our suggestions helpful.

We also hope that you start investing in mutual funds soon. Contact a mutual fund advisor in your city and get started.