Choosing your First Mutual Fund - Fusion - WerIndia

Simple guide to choosing your first mutual fund

Simple guide to choosing your first mutual fund

Mutual funds are an essential part of anyone’s economic life. The first mutual fund you take with either seal your trust in that fund, or likely break your trust in it forever.

Therefore, always be sure to choose your first mutual fund scheme with immense consideration.

In general, one’s first mutual fund scheme should have these following factors, in order for it to be a beneficial scheme.

Beginners should first put their funds in an equity find, since it is a safe and less burdensome option.


This goes for anyone looking for higher gains and long-term investment, since equity funds are the best option for a long-term investment.

Of course, in order to acquire the best mutual fund scheme, the long term must be taken into high consideration.

The long-term tenure balance funds must provide profitable returns, since any investor should be looking for a steady and constant profit.

The equity ratio and debt ratio should have a proportion as close to 65:35 as possible, which can allow for the greatest tax advantage.

Beginners can also invest in a balanced fund scheme, which have less exposure to volatility, and are relatively new schemes.

These are a safe and innovative option for any beginning investor, since they are less prone to any decline along with the stock market.

Therefore, it is best for beginning investors to take a lot of time to think about which mutual fund scheme to choose first. It is an essential part of any investor’s life.

An equity fund is one of the safest and most common options for beginners, but one of the new fund schemes can also work just as well.

Simply be sure to have confidence that the fund scheme chosen will be both beneficial and profitable in the both short term and especially in the long term.

Image Credit: Nick Youngson CC BY-SA 3.0 Alpha Stock Images


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