Mumbai: As India’s mutual fund industry surges, with ₹24,508 crore flowing into Systematic Investment Plans (SIPs) in November 2025, first-time investors are eager to join the wealth-creation bandwagon.
However, choosing the right mutual fund can be daunting. Financial experts are now disseminating foolproof strategies to assist novices in navigating the complexity and securing their financial future.
Start by defining your goals — be it buying a house in 10 years, funding education, or retirement planning. Short-term goals (1-3 years) suit debt funds, while equity funds shine for long-term wealth (5+ years), offering 12-15% average returns, according to AMFI data.
Risk appetite is key: young professionals can opt for high-growth mid- or small-cap funds, while conservative investors may prefer large-cap or hybrid funds for stability.
Research is crucial. Experts recommend checking a fund’s five-year performance, expense ratio (ideally below 1%), and fund manager’s track record. For instance, there are funds with a 23.5% annualised return over 30 years, exemplifying consistency. Diversify across 2-3 funds to balance risk.
Consulting a SEBI-registered advisor ensures tailored choices, especially for those wary of market volatility. “Start small, even with ₹500 monthly, but stay disciplined,” advises Priya Sharma, a Mumbai-based financial planner.
With 9.1 crore SIP accounts in India, Priya Sharma emphasises the importance of aligning funds with goals, assessing risks, and committing for the long term.
As first-timers take their first step, the right mutual fund can transform modest savings into substantial wealth, making financial dreams attainable.