Choosing Mutual founds

Your First Mutual Fund

A Step-by-Step Selection Roadmap

1 Define Your Timeline

Before picking a fund, decide when you need the money. This dictates your risk level.

Short Term: Debt Funds Long Term (5+ yrs): Equity Funds

2 Choose the Fund Category

For beginners, Index Funds are often recommended because they track the top companies (like the S&P 500 or Nifty 50) with very low fees.

Pro Tip: Look for "Direct" plans instead of "Regular" plans to save on commission costs.

3 Check the Expense Ratio

This is the fee the fund house charges you annually. A lower expense ratio means more money stays in your pocket over time.

• Ideal for Index Funds: Less than 0.2%
• Ideal for Active Funds: Less than 1.0%

4 Review Performance Consistency

Don't just look at last year's returns. Check how the fund performed over 3, 5, and 10 years compared to its "Benchmark" index.

Beginner's Quick Comparison

Metric	What to Look For
Risk Level	Check the "Risk-o-meter" (Low to Very High)
Fund Age	Ideally at least 5 years of history
Exit Load	Prefer funds with 0% fee for withdrawing money
AUM	Assets Under Management (Higher usually means more trust)

Next Step: Start with a SIP (Systematic Investment Plan). Even small monthly amounts build massive wealth over time thanks to compounding.

2026 Wealth Strategy

Investment Roadmap & Compounding Tool

SIP Growth Calculator (Target 2030)

Monthly Investment ($)

Expected Annual Return (%)

Time Period (Years)

Estimated Wealth by 2030:

$41,243

Total Invested: $30,000
Wealth Gained: $11,243

Asset Allocation Strategy

A balanced approach for 2026 market conditions.

30%
Index Funds

20%
AI Infra

20%
Small-Cap

30%
Other/Cash