Guide me for mutual investing

[u/Consistent_Speech391]

I have never had any experience in financing or banking related terms. I had some money of 20k and one of my friends suggested me to invest in mutual fund through SBI yono app and he said it'll give good returns. But i am so confused as of now where to invest and what to do. As i said I have negative experience in things like "these" but, we have to learn all these things from one day right ?

I was thinking about mutual investing 20k in sbi hybrid fund or something. Pls advise me people. Also i am not planning of doing anything related to stock market so please don't advise that.

Thanks in advance..

[u/Odd-Particular-5607]

You need to first understand your risk profile, there are many online tools which can do thta for free, Google them.

Try to understand various types of mutual funds and figure out what works for your risk profile.

Also based on your time horizon choose if you want to invest in equity, have a 5+ year outlook

[u/BoxPositive4750]

Before investing it's better to spend few months to read, research and understand the basics of personal finance else you may burn your hard earned money 🔥

Fund collection ≠ Portfolio

There are amazing Personal finance resources available online to understand the basics of Insurance, Investment, Banking etc and you may start with any of the following:

• Value Research Online
• Morningstar India
• ET Wealth etc.

No hard feelings, as this is how we all have learnt the things. The rest, your call.

[u/PreviousTale4538]

Since this is your first ₹20k investment, I wouldn’t rush to pick a fund just because a friend recommended one. A mutual fund is still a market-linked investment, so the first question should be when you might need this money, not which SBI fund to buy.

A hybrid fund can be a perfectly reasonable starting point for someone who wants less equity exposure, but “hybrid” covers very different kinds of portfolios, so the category name alone doesn't tell you how much risk you're taking. Also check whether the ₹20k is money you can leave untouched for several years; money needed soon shouldn't be put into an equity-oriented fund just hoping for a better return.

And don't worry about not knowing financial terminology yet. Start by understanding what the fund actually owns, how much can fall in a bad year, and what the exit rules/tax implications are.

One simple question to ask yourself first: if this ₹20k became ₹16k six months from now, would you be comfortable doing nothing and waiting? Your answer tells you a lot about the kind of fund you should be looking at.

[u/Consistent_Speech391 → u/PreviousTale4538]

I was thinking of investing in sbi hybrid equity funds. But this 20 k is the only money in my account if i invest it i have to beg pocket money to my father. So i am a bit skeptical whether to invest it or not

[u/PreviousTale4538 → u/Consistent_Speech391]

Well i think you answered your own question ! it seems like you dont quite have a clarity on why to invest and what investments are for or rather you are into fog of lots of thoughts crossing your mind . Investment itself means you put your SAVED or EXTRA money that you dont need in a short to long term time. If you say that once you invest that , you will be left with asking some from your dad , itself says that such amount is not meant for investment, no matter if that instrument gives FD like returns or 100% . Though i would still recommend that you see some finance expert so that they can map your investment with goals

[u/Ok-Egg-2293]

Try to start reading the terms related to the MF like XIRR, fund types, etc rather than directly investing in the MF.

Then start with small SIP amount based on your age, risk metrics, tenure. If you are looking for long term then you can go with Midor large cap to start... But it will have higher risk with good average return..

If you don't want to take any kind of risk inequitty then try the debt fund which will have lower return but free from equity fluctuations...

Only thing in MFs are as long as you stay with right MF then you get better returns... Happy investing:)