Key Takeaway: Start with a Nifty 50 Index Fund SIP of ₹500/month. Choose Direct Growth plan. Stay invested for 7+ years.
What Are Mutual Funds?
A mutual fund pools money from many investors and invests it in stocks, bonds, or other securities managed by a professional fund manager.
Types of Mutual Funds
1. Equity Funds — Invest in stocks (high risk, high returns) 2. Debt Funds — Invest in bonds (low risk, moderate returns) 3. Hybrid Funds — Mix of equity and debt 4. Index Funds — Track a market index like Nifty 50 5. ELSS Funds — Tax saving equity funds (3-year lock-in)
How to Start
1. Complete KYC (PAN + Aadhaar) 2. Choose a platform (Zerodha Coin, Groww, Kuvera) 3. Select Direct Plans (lower cost) 4. Start a SIP — even ₹500/month 5. Choose Growth option
Common Mistakes
• Investing based on past returns alone • Stopping SIP during market crashes • Choosing Regular over Direct plans • Not diversifying • Redeeming too early