SIPs For First Time Investors with Mutual Funds Mobile App

If you’ve ever thought, “I really want to start investing, but I don’t even know where to begin…” congrats, you’re not alone. Most of us start there - curious, slightly scared, and confused between mutual funds, SIPs, diversification, exit load, expense ratio and all those fancy terms that sound like an alien code.

But here’s the thing: you don’t have to understand everything to start, you just have to start small and start right.

And that’s exactly what a Systematic Investment Plan (SIPs) helps you do. A SIP is not about timing the market, it’s about developing a habit of consistency.

As Warren Buffett once said, “Do not save what is left after spending, but spend what is left after saving.” And SIPs make this wisdom a reality, they turn saving into a non-negotiable part of your life.

Confusion Disguised as Diversification

Let’s be honest; when you first start reading about mutual funds, it feels like stepping into a maze. There are thousands of funds, all claiming to be “the best” confusing you more before you even take your first step.

Now, imagine this - I’m a first-time investor. I read a few blogs, watched a couple of YouTube videos, and thought, “I’ll diversify because that’s what smart investors do!”

So, I invest Rs 500- Rs 1000 each in 4–5 different funds: one large-cap, one mid-cap, one sectoral, maybe one ELSS for tax-saving.

Sounds great, right? It feels like I’ve done my homework, except it’s not diversification, it’s confusion.

I didn’t know what each fund was doing, where my money was going, or how to track performance. I ended up juggling too many things, with no real focus.

True diversification isn’t about owning many funds. It’s about owning the right mix — a balance between risk and return that suits your goal, timeline and behaviour.

Here’s where understanding the types of mutual funds becomes crucial. Equity, debt, hybrid, index or ELSS; each serves a specific goal and risk appetite. Instead of spreading yourself thin, learn what each category does and build clarity from there.

So, if you’re just starting, keep it simple. Pick 1 or 2 good mutual funds (preferably with moderate risk funds), stay consistent and understand how your money is growing. Because in investing, simplicity always outperforms complexity.

Don’t Jump into Risky Assets

Here’s a trap most beginners fall into - chasing high returns too early.

You hear a friend say, “I made 25% returns in small-caps last year!” and suddenly your FOMO kicks in. You invest, markets dip and boom your first experience with investing becomes painful because markets aren’t always kind, volatility is the price you pay for potential returns.

And what happens then?

You lose trust in the market altogether.

According to an AMFI report, over 40% of new investors exit their SIPs within the first two years, often due to short-term losses. That’s why, as a first-time investor, your first experience matters more than your first return.

Start with low-risk or balanced funds. Understand the basics. Watch your SIP grow slowly but steadily and gradually explore riskier assets once you’ve understood how markets behave. Because one bad start can make you walk away forever but one good start can make you stay for life. Explore MINTIT to simplify fund discovery, understand risk levels and start your SIP investment for beginners with just a few taps.

The Goal Needs to Be Defined

Before you start a SIP, ask yourself “why am I doing this?” Not “because everyone says it’s good” but your real reason. Your goal gives your SIP direction and purpose.

Maybe you’re a student who wants to buy your first phone or laptop. Maybe you’ve just started working and dream of a bike, a wedding fund or a solo vacation.

Or maybe you’re planning long-term and want to buy a car, even your first home or financial independence.

Whatever your goal is big or small - there’s a SIP for it.

Different goals need different time horizons and contribution sizes like;

• Low Ticket - Rs 1,000 - Rs 2,000
• Medium Ticket - Rs 5,000- Rs 10,000
• High Ticket - Rs 20,000 - Rs 30,000+

Your SIP should match YOU - your lifestyle, income, and comfort level. As the saying goes, “You can’t reach a destination you haven’t defined.” When your goal is clear, every SIP instalment feels purposeful like you’re one step closer, not just investing for the sake of it.

Don’t try to make Rs 1 crore out of Rs 2,000 SIP per month overnight — the magic lies in time, not timing.

How Your Money Grows with Time

To put things in perspective, let’s see what happens when consistency meets compounding. Here’s how much wealth you can build with a 12% CAGR, a historically reasonable estimate for equity mutual funds:

This is what makes SIPs magical - time multiplies what discipline starts. You don’t need huge money to begin; you just need the patience to stay.

A Gentle Reminder Before You Begin

Don’t overthink your first SIP, don’t wait for “the right time,” and don’t compare your journey with someone else’s.

Start small, stay steady, automate it and let compounding do its quiet work.

The markets will go up and down, but your discipline shouldn’t.

Your first SIP is less about the amount and more about the commitment - a promise to your future self. Because wealth doesn’t come from chasing but it comes from showing up, month after month quietly and consistently.

So take that first step. Let your money grow as you grow. Because someday, when your goals turn real, that phone in your hand, that trip you dreamed of, or that home you built - you’ll look back knowing it all began with a tiny SIP and a little bit of courage to start.

To guide the first-time investors through all the complexities of wealth creation, a trusted mutual fund distributor is essential. MINTIT, India’s dedicated Mutual Fund Application which caters to your personalised goals and accompanies you to achieve your financial milestones is eager to help you build your wealth.

Depending on your profile it can precisely suggest tailored investing plans to achieve your goals through best suited mutual funds. Sign up to MINTIT now and start your mutual funds investment journey under professional guidance.