Choosing the right fund for your first investment


Choosing the right fund for your first investment



Benefits of investing

Investing is something that everyone should do sooner or later. No matter what your age, it is always worth investing in financial instruments. There are several benefits to investing. These are:

Always stay ahead of inflation

If you want to grow your wealth, investing is the right path for you. Every year there is an increase in prices and that is inflation. When you invest in something, you get the amount of money according to inflation. The inflation rate varies every year and has fluctuated in the range of 3-5% in the last few years.

Build your wealth

Investment helps you create wealth. However, you will need to do market research and keep an eye on the market movement. There are hundreds of plans to invest in; you just have to choose the one you might want to invest in. You can also turn to any financial consultant to make the right financial decisions.

Investment that prepares you for your retirement

It really is said, ‘money works for money.’ If you want to escape without financial or financial problems, careful financial planning can help you. The more you invest, the greater the benefit you get with compound interest.

Manage your taxes smartly

Investing can be good for saving tax. If you invest in the ELSS scheme through a lump sum or SIP mode, you can avail deductions up to Rs. 1.50,000 in accordance with section 80c * of the Income Tax Act. The schemes have a lock-in period of 3 years from the grant date, after which the units can be redeemed or exchanged.

* The individual is assumed to apply the full tax deduction limit of DKK 150,000. Financial year according to section 80C. This deduction is allowed for a person or a HUF. This is only to illustrate the tax savings potential of ELSS and is not tax advice. Contact your tax advisor for tax purposes. This applies provided the person is in the old tax regime. The Finance Act, 2020 has proposed a new personal tax regime, where most deductions / exceptions such as sections 80C, 80D, etc. must be foreseen. However, this is optional.

Invest to reach your goals

If you invest your money wisely, your money can grow and it can help you become financially stable. Once you have become financially stable, you can use your money to reach your assets or goals.

Few points to keep in mind when investing for the first time

Setup in investment objectives

Check your budget and financial goals. Investment is always good when it comes to a purpose.

Select fund type

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

Go for SIPs instead of one-time investments

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

Keep all your documents up to date

Finish your KYC documents and keep track of all paper items.

Seek help from a financial consultant

If you are still confused, it is better to consult a financial advisor.


To become financially and financially stable, investing is crucial. 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 strength of composition by simply using our Wealth-Builder calculator below. Or consult your financial advisor for help.

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.

To learn more about KYC documentation requirements and procedure for changing address, phone number, bank details, etc., visit One-time KYC registration is mandatory for investing in mutual funds. You can complete your KYC by submitting the following to one of our branches or collection centers: a) Completed and signed Central KYC form b) ID Certificate and Address Certificate: Any document issued by the state, self-certified. PAN is mandatory for investment in mutual funds. c) Proof of address: Same as proof of identity (except PAN) d) Latest passport photo. Originals must be brought for verification. Investors should only handle / invest in SEBI-registered mutual funds. Details are available at Investors can reach us at + 91-8048893330 or write to us at For escalation, write to or submit your complaint to SEBI via their SCORES (SEBI Complaint Redressal System) portal at

Disclaimer: Content produced by Kotak Mahindra Mutual Fund