Choosing Your First Fund

The 3-Step Framework

Step 1: Pick a Category For your first fund, choose ONE of these:

Nifty 50 Index Fund — simplest, lowest cost, tracks India's top 50 companies
Flexi Cap Fund — actively managed, can invest across market caps
Large Cap Fund — stable, established companies

Step 2: Filter by Metrics Within your chosen category, look for:

Expense ratio < 1% (for Direct plans)
3-year and 5-year returns above category average
AUM > ₹1,000 crore (ensures liquidity and fund stability)

Step 3: Check Consistency

Don't chase the #1 fund — look for one that's consistently in the top quartile
A fund that's top 25% every year is better than one that's #1 one year and #50 the next
Check the fund manager's tenure — stable management is a positive sign

For Absolute Beginners

If you're overwhelmed, just start with a Nifty 50 Index Fund from a top AMC:

UTI Nifty 50 Index Fund (Direct Growth)
HDFC Index Fund - Nifty 50 Plan (Direct Growth)
SBI Nifty Index Fund (Direct Growth)

These are simple, low-cost, diversified, and require zero active monitoring. You can always add more funds later.

One Fund Is Enough to Start

You don't need 5 funds on day one. One well-chosen fund is better than a confusing portfolio of 8 overlapping funds.

Use our Fund Screener to filter and compare funds within any category.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.