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Choosing the right Fund for First Time Investment

30 September

Advantages of investing

Investing is something that everyone should do sooner or later. Whatsoever be your age, it’s always worth investing in financial instruments. There are several advantages to investing. These are:

  • Always Stay Ahead of Inflation

If you want to grow your wealth, then investing is the right path for you. Every year there is an increment in prices, and this is inflation. As you invest in something, you will get the amount of money according to inflation. The rate of inflation varies every year and has been fluctuating in the range of 3-5% in the last couple of years.

  • Build Your Wealth

Investing helps you in wealth creation. However, you will have to do some market research and keep a close watch on the market movement. There are hundreds of plans to invest in; you just need to choose the one that you might want to invest in. You can also approach any financial consultants to make the right financial decisions.  

  • Investing which prepare you for your retirement

It is truly said, ‘money works for money.’ To retire without any financial or economic issues, prudent financial planning may help you out. The more you invest, the more advantage of compound interest you will get.

Investment can be good for saving tax. If you invest in the ELSS scheme through a lump sum or SIP mode, you can avail deduction up to Rs. 1,50,000 under section 80c* of income tax Act. The schemes have a lock-in period of 3 years from the date of allotment, after which the units can be redeemed or switched.

*The individual is assumed to utilize the complete tax deduction limit of ₹150,000 per financial year under Section 80C. This deduction is allowed to an individual or a HUF. This is only to illustrate the tax-saving potential of ELSS and is not tax advice. Please consult your tax consultant for tax purposes. This is applicable assuming the person is in the old tax regime. The Finance Bill, 2020 has proposed a New Personal Tax Regime where most of the deductions/exemptions such as section 80C, 80D, etc. are to be foregone. This is however optional.

  • Invest to meet your goals

If you invest your money in a prudent manner, then your money may grow, and it may help you to become financially stable. Once you become financially stable, then you can spend your money to meet your assets or goals.

Few points to remember while investing for the first time

  • Setup in investment goal

Check your budget and financial goals. Investing is always good when it’s done with a purpose.

  • Choose the fund type

Balanced or debt fund investment types are always recommended to first-time investors.

  • Go for SIPs instead of Lump Sum investments

Lump-Sum investments can put you at risk, so it’s better to go for SIPs.

  • Keep all your documents updated

Get your KYC documents done, and keep track of all paper stuff.

  • Seek help from a financial consultant

If you are still confused, then it’s better to consult a financial advisor.


To become economically and financially stable, it is crucial to invest. Choose a good plan and start investing. Go for SIP investment, if you are investing for the first time.  Plan your SIP investments by knowing the power of compounding by simply using our Wealth-Builder Calculator below. Or consult your financial advisor for assistance.


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