Mutual Funds · Step-by-step guide

How to Invest in Mutual Funds in India

New to mutual funds or restarting after a break? This simple guide walks you through exactly how to start: from choosing the right fund and completing KYC, to starting your first SIP with confidence.

✔ For Indian investors ✔ Works for SIP & lumpsum ✔ No prior market knowledge needed

5 Simple Steps to Invest in Mutual Funds

Whether you are investing for retirement, children’s education or wealth creation, the basic process is the same. Here’s a clear roadmap:

Define your goal & time horizon

Decide why you are investing: retirement, house, education or general wealth. Also note how long you can stay invested (3, 5, 10+ years). This decides whether you should pick equity, debt or hybrid funds.

Complete your KYC

KYC (Know Your Customer) is mandatory for all mutual fund investors in India. With Labh, you can complete your KYC digitally in a few steps using your PAN, Aadhaar and bank details.

Choose the right fund type

Match your risk profile and goals: equity funds for growth, debt funds for stability, and hybrid funds for balance. Labh’s research engine helps you shortlist SEBI-registered funds suited to your profile.

Decide SIP vs lump sum

You can invest a fixed amount every month via SIP or invest a larger amount at once as lump sum. SIPs help average out market ups and downs and build discipline.

Invest & track regularly

Once invested, review your portfolio once or twice a year—no need to react to every market swing. Labh helps you track performance and rebalance when needed.

Stay invested for the long term

Mutual funds work best when you give them time. Allow compounding to do the heavy lifting instead of chasing quick, short-term returns.

Why Mutual Funds Are a Smart Way to Start Investing

Instead of picking individual stocks on your own, mutual funds allow you to invest in a ready-made basket of assets managed by professionals.

Diversification from day one

Your money is spread across many companies and sectors. This reduces the impact if one stock performs poorly.

Lower single-stock risk

Professional management

Fund managers and research analysts track markets, sectors and companies on your behalf so you don’t have to.

Save time & effort

Start small, grow big

Begin with SIPs as low as a few hundred rupees. Increase your contribution as your income grows.

Perfect for first-time investors

Equity funds Debt funds Hybrid funds Index funds

Common Questions About Investing in Mutual Funds

How much money do I need to start?

Many mutual funds allow you to start a SIP with a few hundred rupees per month. You don’t need a large lump sum to begin.

Is it safe to invest through apps like Labh?

Labh connects you to SEBI-regulated mutual funds and uses secure payment and banking channels. Your units are held with the fund house/registrar, not inside the app.

Can I withdraw my money anytime?

Most open-ended mutual funds allow you to redeem units on any business day. Some categories (like ELSS) have a lock-in. Labh clearly shows this before you invest.