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How do I start investing in mutual funds?

You can consider investing in equity if you have an investment horizon of at least five years

I want to start investing in equity and mutual funds. Can you tell me how do I start investing in them? I don't have much idea about this.
- Rikin Baghadiya

Firstly, you can consider investing in equity if you have an investment horizon of at least five years. You should consider investing in stocks via equity mutual funds since you are a newcomer to the stock market and you do not know much about the workings of the stock market. We typically recommend equity-oriented balanced schemes to novices in the stock market. We have noticed that new investors tend to panic when they see their investment significantly lose value during a bad phase in the market. Balanced funds address this issue to some extent because their portfolio mix of debt and equity. The debt part of the portfolio acts as a cushion during volatile phases in the market. Here is a list of top-rated balanced schemes.

However, before you start the process of investing, it would be a better idea to acquaint yourself with the basics of investing. You may start with First things...

Please mail us if you have more queries.

This article was originally published on March 18, 2016.

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