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Start investing in a balanced fund for a good start

I am 24 years old and would like to start investing in equities. Is this a good time to buy mutual funds?
- Anurag Prasad

You are at the right age to start investing in equities through mutual funds and you have the time on hand to stay invested for the long run. The impact of regular investing and compounding over the next 15 years and more will add tremendously in wealth creation helping you build a sizeable corpus. They key is to invest regularly.

However, your fears about the markets at the moment are understandable. There is no right or wrong time to start investing in mutual funds. Given that you are new to investing, it would be a good idea to start investing in a balanced fund, which are actively managed, for the next six months to understand, familiarise and experience how investments in a mutual fund works. Use the systematic investment plan option to invest in these funds such as HDFC Prudence or Reliance Regular Savings Balanced fund. Once you are able to relate to this experience, you will start appreciating the benefits of investing in mutual funds and can move into a large-cap fund or a large- and mid-cap fund.

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