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Beginners guide for Mutual Fund investing: How to invest without any financial knowledge

Beginners guide for mutual fund investing

Beginners guide for mutual fund investing

Investing in Mutual Funds can be an excellent way to grow your wealth over time, even if you have little to no financial knowledge. A mutual fund is becoming popular in ads, newspapers, and social media. Every single person is talking about investment in mutual funds. Are mutual funds profitable or give good returns? What about risk management? let’s find out how a beginner smartly invests in a mutual fund without any financial knowledge.

What is a Mutual Fund?

A mutual fund is a kind of investment option that is created by an asset management company [AMC] that collects money in the specific fund from numerous investors and utilizes that money to buy a diverse portfolio of stocks, bonds, or other securities. It is managed by an experienced fund manager whose goal is to earn good returns on investments so that they can make wealth for their clients.

Set Investment Goals

Define your investment goals. Ask yourself questions like:

  • What do you want to achieve with your investment?
  • Are you saving for retirement, a down payment on a house, or a child’s education?
  • What is your time horizon for these goals?

Understand your Risk Profile

possibility of losing money and experiencing a period of adjustment.

Choose a platform

Many first-time investors don’t choose mutual funds because they believe the investment process is too difficult. Mutual Funds are available on both online and offline platforms, but it makes investment easy to use online platforms like

Build a mutual fund portfolio

A portfolio is a selection of mutual funds that helps you in achieving your financial objectives. It’s your entire portfolio returns that matter, not the performance of a single fund.

Start Small

You don’t need a lot of money to start investing in mutual funds. Just start your financial journey safely with Online SIP in a mutual fund. SIP is where you regularly set aside a fixed amount of money at specific intervals, like monthly savings.

Another important thing is KYC

Before investing in mutual funds if you have not completed the Know Your Customer (KYC) protocol, which the government has required to prevent money laundering and ensure the security of financial transactions. You must have a valid PAN card and address verification as part of the KYC process.

Consult a financial expert to research and choose funds

Investing in mutual funds requires a significant amount of effort. The performance of the many mutual funds must also be tracked since there are dozens to select from. Professional managers select the best-trending fund with less risk tolerance. For example- Balanced Advantage Mutual Funds are a great choice because they balance between safe and growth investments. They automatically adjust to market conditions, aiming to protect your money when it is rough and grow it when it is good. The trending balanced advantage funds are-

  • Motilal Oswal Balanced Advantage Fund.
  • Baroda BNP Paribas Balance Advantage Fund
  • Edelweiss Balanced Advantage Fund

Consider employing a mutual fund specialist or distributor if you’re having problems choosing the best mutual funds.

Monitor Your Investments

These financial experts review your mutual fund investments to ensure they are still in line with your goals and risk tolerance. Make Adjustments if necessary, but avoid making impulsive decisions based on short-term market fluctuations.

Be patient

Investing is a long-term endeavor. Don’t panic when the market fluctuates. Your investment needs time to increase in value. If you keep making changes and getting nervous when the market goes down a little. You might miss out on the long-term benefits of investing. Stick to your investment plan and give your fund time to grow.


Without being a financial expert, you can initiate mutual fund investments by comprehending the basics, establishing clear goals, and taking small deliberate steps to grow your wealth and pursue financial objectives. Remember that patience and discipline are your allies in the world of mutual fund investing and as you gain experience, your financial knowledge will naturally expand.

For a better understanding of mutual funds, you might watch this-  Mutual Fund Talk.