Best mutual fund scheme for a new investor

I am 25 years old. I want to invest in mutual funds through SIP. I want to start with Rs 1,000 per month, with annual increment of 10 per cent or Rs 1,000 as per my financial status for the next 20 years. Which fund would you suggest for me?
--Pritish Nevgi

We always ask investors to choose their mutual funds based on their goals, investment horizon and risk profile. You have not shared your risk profile. So, it is difficult to offer personalised advice to you.

It is always better to link your investments to a goal. First, identity your various financial goals. Two, quantify your goal – find out the current cost to achieve the goal; account for inflation to reach a realistic target for the goal.


As a rule, invest in debt mutual funds to achieve your short-term financial goals. For long-term goals, you may consider investing in equity mutual funds. Equity is considered the best investment option to achieve long-term financial goals, as it has the potential to offer superior returns than other asset classes over a long period.

You may start with Rs 1,000 to gain experience. However, it is better to calculate a target corpus to achieve a long-term financial goal, and start investing to achieve it.

Many new equity mutual fund investors are often wary of too much volatility. We recommend aggressive hybrid funds or largecap mutual funds for such investors.

Here are the links to our recommended aggressive hybrid funds and largecap mutual funds:

Best aggressive hybrid funds to invest in 2018
Best largecap mutual funds to invest in 2018