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How can a layperson with limited knowledge choose an investment?

Dhirendra Kumar talks about how a new investor should start the investment journey.

What is the easy approach to select investment for a layman who does not know enough to get into a very detailed study of fundamentals?
- Bhaskar

Before choosing any investment option, you need to ask yourself a few questions. First, what is the time period of your investment? When are you likely to need this money and is it the first time that you are investing? A first-time investor having an investment horizon of more than five years should go for a mutual fund. If you have enough surplus amount for investment, I suggest you spread it across 15-24 months, depending on the amount of investment available. If you don't have any surplus in hand, start investing through an SIP from your salary.

If you are talking about investing in stocks without getting into the fundamentals, I think it would not be a good idea to do so. Those investors who do not have the knowledge or time to look closely at stocks or companies should be away from stock investing or otherwise, it may give them a lot of anxiety.

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