By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Subscribe Now
About the author
Anishka Bhadly
Anishka Bhadly, working at Loansjagat, is a content writer with a finance and business background. She has completed her bachelor's degree with a specialisation in finance and is currently pursuing an MBA in the finance field too. The knowledge she has gained from her studies and experience working with EdTech companies helped her combine theoretical knowledge with practical industry insight. Her expertise lies in creating well-researched, informative, and reader-friendly content in various banking, personal finance, loans, insurance, and investment-related topics.
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
50+
Banks & NBFCs Offers
Other services mentioned in this article
Taking care of your money is important if you want to meet your future needs and goals. But when you are new to investing, it can feel confusing. There are many options, rules and terms you need to understand. You will learn how to invest in mutual funds in this article. It will help you make better choices.
A mutual fund takes money from lots of people and puts it into different things like shares, bonds and other short-term money investments. A trained fund manager looks after this money and invests it according to the plan of that fund.
When you put money in, you get units of that fund. Each unit has a value called Net Asset Value or NAV. This value can rise or fall depending on how the investments in the fund are doing.
In India, SEBI looks after mutual funds and makes sure they follow the rules. Every fund has a clear goal and papers that tell you exactly where your money will go.
Your money joins the money of other people who invest in the same fund. The fund manager then uses the whole amount to buy shares or bonds based on what the fund is meant to do.
There are two main ways people invest. One is putting a big amount at one time. The other is putting a fixed amount every month or every few months. This second way is called SIP.
You get units based on the NAV on the day your money is put in. When you want your money back, you sell the units and get the amount based on the NAV of that day. Any exit load (if it applies) is cut first. Tax on the profit is handled separately as per the rules.
Funds charge some money for running the scheme. This is called expense ratio. Some funds also take a small fee if you take your money out too early. Always look at these costs before you put money in.
Funds come in different kinds based on what they invest in and what they try to achieve.
Before you pick any fund, look at its goal, what it holds, the expense ratio, exit load and the risk level shown by SEBI. The risk levels go from low to very high.
You need to complete KYC first. Keep your PAN, proof of who you are, proof of address, mobile number, email and bank account details ready. Your bank details are only for sending and receiving money. They are not used as proof of identity or address.
Common documents for KYC are Aadhaar, passport, voter ID or driving licence. What is needed can change based on how you do the KYC.
You can invest in different ways.
Direct plans and regular plans put money in the same fund. The difference is that direct plans have no distributor commission, so their expense ratio is usually lower.
If you do not have a PAN, you can still invest up to ₹50,000 in a financial year under special rules, but only if you meet the conditions and complete the needed KYC. All your investments, including SIPs, count toward this limit.
Don't pick a fund just because of past returns. Check these points first.
Mutual Fund Distributors (MFDs)
*T&C Apply
Checking these simple points helps you pick a fund that actually fits your goal.
New investors often look only at past returns and make these mistakes.
A better way is to match the fund with your goal, the time you can stay invested and how much loss you can handle without panic.
Mutual funds become easier once you know the basic steps. Finish your KYC, be clear about your goal and risk level, compare a few funds and pick a way of investing that you understand. Always read the scheme details and costs. Remember that returns from mutual funds move with the market and are never guaranteed.
No. Your money can rise or fall with the market. Nothing is fixed or guaranteed.
It depends on your goal. FD is safer for a short time. Mutual funds can grow more over long years but carry risk.
Returns are not fixed. Markets can drop. You pay fees. Short-term loss is possible.
Match it to your goal and time horizon. Check risk level, costs and consistency. Avoid chasing only recent high returns.
It means about 80% of returns often come from just 20% of your funds or holdings. Focus on the strong ones.
When it comes to equity funds ensure that you invest for at least 7 or more years, this allows you to participate in the market cycles.
Complete your KYC with PAN and Aadhaar. Then pick a fund on an AMC website, app like Groww or Zerodha, and start a SIP or one-time payment.
No one fund is best for everyone. It depends on your goals, time horizon and risk level. Index funds work well for most beginners.
