Mutual Fund Investing for Beginners (Indian Edition)

Indian mutual funds AUM crossed ₹70 lakh crore in 2026. SIPs alone bring in ₹26,000+ crore monthly. If you haven't started yet, you're not alone — but you should start today.

The 3 categories you need to know

• Equity (>65% in stocks): high return, high volatility — for goals 7+ years away
• Debt (>65% in bonds): stable, modest return — for goals 1-3 years away
• Hybrid: mix of both — sweet spot for 4-6 year goals

How taxes work (post Jul-2024)

• Equity STCG (<1Y): 20%
• Equity LTCG (≥1Y): 12.5% above ₹1.25L exemption
• Debt MF: at slab rate, no LTCG benefit (post Apr-2023 purchases)

How to start

Open a free demat at Groww/Zerodha Coin/Kuvera/INDmoney. Start with index funds (UTI Nifty 50, Parag Parikh ELSS for tax saving) — go fancy only after a year of SIP discipline.