First mutual fund investment for a 20-year-old

I am going to be 20 years old next month. An insurance policy that my father had taken in my name is going to mature. I want to make my first investment with the proceeds. I can afford to invest Rs 60,000.
-Shivam Gupta

We always ask our readers to choose your mutual fund investments based on their financial goals, investment horizon, and risk profile. You should also follow the same strategy. Identify a goal and invest the money to achieve it. Here are a few points your should keep in mind. If you want to achieve the goal in a few years or below three years, stick to bank deposits and debt mutual funds. While investing for a short-term goal, your primary concern should be to preserve your capital and avoid unnecessary risk. However, if you are investing for a long or very long goal, you can consider investing in equity mutual fund schemes. These schemes are risky and volatile, but a longer horizon would help you to earn better returns from them. Make sure to choose schemes that matches your horizon and risk profile.

Since you are new to mutual funds, you should seek the help of a mutual fund advisor. New investors need a lot of guidance and reassurances during the initial phase of their investment life.