How much should I invest every month?

Start with at least 20% of your monthly income and scale towards 30–40% as income grows. Automate via SIPs.

Which is better for beginners: stocks or mutual funds?

Mutual funds (index or flexi-cap) are better for beginners due to diversification and low cost. Learn stocks after 12–24 months.

What should be in my emergency fund?

Keep 6 months of expenses in a high-yield savings account or liquid/overnight debt fund for instant access.

Are gold jewellery purchases good investments?

No. Making and wastage charges reduce effective returns. Prefer SGBs, gold ETFs, or digital gold from trusted channels.

How often should I review my portfolio?

Once a year. Rebalance only if any asset deviates by more than ±5% from its target allocation.

Learn How to Invest in India

A beginner-friendly, step-by-step Indian investing guide covering SIPs, index funds, asset allocation, taxes, and common mistakes.

Why Should You Invest?

Inflation in India generally trends around 5–6% over the long term. Parking money in low-yield accounts erodes purchasing power. Investing helps you beat inflation and grow wealth.

Saving

Safe but slow growth
Good for emergencies

Investing

Potentially higher returns
Best for long-term goals

Main Asset Classes in India

Investment	Risk	Expected Return	Best For
Bank FDs / RDs	Low	5–7%	Short-term safety
Debt Mutual Funds / Bonds	Low–Medium	6–9%	Conservative investors
Equity (Stocks)	High	12–18%+	Long-term compounding
Equity Mutual Funds / SIP	Medium–High	10–15%	Beginner-friendly
Gold (SGB / ETF / Digital)	Medium	8–10%	Inflation hedge
Real Estate / REITs	Medium	7–10% + appreciation	Income + diversification

Returns are indicative long-run expectations, not guarantees. Asset returns vary with cycles.

How to Start: Step-by-Step

Define goals & time horizon: <3y (Debt/Liquid), 3–5y (Hybrid), >5y (Equity/Gold).
Build an emergency fund: 6 months of expenses in liquid/overnight funds or savings.
Protect first: Buy adequate term life (if dependents) and health insurance.
Begin with equity MFs via SIP: Nifty 50/Sensex index funds or a flexi-cap. Consider Nifty Next 50 after basics.
Open a Demat (optional): For direct stocks after 12–24 months of MF learning.
Automate & review annually: Rebalance if an asset drifts ±5% from target.

Sample Beginner Allocation

50% Equity Index / Flexi-cap SIP
20% Debt / Liquid Fund
10% Gold (SGB/ETF)
10% REITs / Real Estate
10% Cash / FD

Adjust for age, risk tolerance, and goals. Increase equity weight with longer horizons.

Indian Tax Basics (Quick)

Equity/ Equity MF: STCG @ 15% (<= 12 months), LTCG @ 10% above the annual exemption (after 12 months).
Debt MF/ Bonds: As per slab rates; indexation removed for most categories for new investments (post-2023 changes).
Gold: SGB interest is taxable per slab; SGB redemption after maturity is tax-exempt on capital gains.
ELSS (80C): 3-year lock-in; equity taxation applies on redemption.

Consult a tax professional for personalized advice. Rules can change.

FAQs

How much should I invest monthly?

Start with 20% of income and scale towards 30–40% as income grows. Automate via SIPs.

Which funds are good for beginners?

Low-cost Nifty 50/Sensex index funds or a diversified flexi-cap. Add Nifty Next 50 after 12 months.

Is gold jewellery an investment?

Prefer SGBs/ETFs over jewellery due to making/wastage charges.

How often should I rebalance?

Once a year, or if allocation drifts by ±5%.

Can I start with ₹2,000 per month?

Yes. Small but consistent SIPs compound meaningfully over time.