SIP

am commenting just to track the responses. There are 1000s of equity MF schemes. i could never understand how they decide which one is better. They say don't invest in NFO, because there is no established track record. They also say past performance is not a guarantee for future performance. For eg - When there is already large map equity scheme in existence, why do funds start another scheme and raise money? There is no site where you can track a closed/failed MF. So, effectively the data available is only "successful ones". In a 30 yr unstopped bull market, its obvious that many would have succeeded. starting to feel India Mutual fund industry is a big ponzi scheme.

Hi, I'm by no means a expert investor or certified investment advisor, so do your own bit of research before investing. But here are some tips that I followed when I started SIPs.

1. Invest in an index fund. These funds merely mimic the sensex/nifty stocks with same weightage. Hence when market increases so does your investment. This is the easiest no brainer for your initial investment. Absolutely must invest in index funds.
2. For your other funds, login to value research website and search for the ranking of the funds for each category - large cap, large and mid cap, mid cap, flexi cap, and small cap. Go for any of the top 5 funds which have given highest returns in last 3 and 5 years.
3. Mutual fund investment is usually at least 3-5 year game, so start your sip amount accordingly.
4. I'll suggest avoid small caps or have limited amount in small caps. Small caps stocks are already over valued and there's chance that these stocks will be down in 2025.
5. Go for direct funds, not regular. Direct funds have lower expense ratio because no broker involvement.
6. Don't track your investment everyday or even every week 😀. Let the fund house take care of it.
7. Avoid NFOs. Avoid thematic or sectoral funds (Healthcare, defense, psu etc).
8. I subscribe to ET wealth weekly newsletter which gives good info on good funds, stocks and personal finance tips etc.
9. Don't invest in more than 5 or 6 funds totally.