Investing for Beginners: 5 easy steps to get started

One of the biggest drawbacks today is the lack of awareness. We often follow what is blindly told to us, either by our parents, friends or financial advisor. Every step that one takes while making decisions, especially financial, must be well thought of.


Make yourself investment-ready by following these 5 steps:

1. Know about all the options available

Do you ever go shopping without evaluating the best sale? It’s not fair to do so. Similarly, making a half-aware decision is worse than making none because you would never know what you are missing out on.

Out of the plethora of investment options available, some might suit your goal and some might not, but to evaluate that, you must know all that are present. And for that, you must do your research.

2. Evaluate the zone of risk

Before you invest your money into financial instruments, you must understand your risk appetite. Once evaluated, you must match your risk capacity to the risk exposure of the investment and only then invest.

3. Pick out your mix of investment options

You must have heard several investment experts say ‘don’t put all eggs in one basket’. It is for this reason that you must know what all kinds of investments should go in your basket.

Your mix of investments must be decided basis the risk that each carry, the maturity and other such factors. To know what kind of investments should make up your portfolio, you could take the advice of professional financial advisors.

4. Be aware of the conditions involved

No one likes surprises when it comes to their money. If, after investing a certain amount, a significant portion of it goes in paying for the additional expenses that you were not aware of, you would feel cheated.

Hence, do your research about a particular investment well – its features, expenses, conditions etc. Such intricate details about investments are often widely available on various websites that carry information, such as the fund houses, fraternity websites etc.

5. Know when to hold, exit and reallocate

An investment forgotten is as good as an investment never made.

To make sure your money isn’t going down the drain, you must keep revisiting the performance of your investment and ensure that it’s on track with your objective. If not, you could consider rebalancing your portfolio.

Knowledge is an investor’s strongest investment. Let’s make sure we take no half-informed decisions, let’s research thoroughly and not just sign anywhere!


An Investor Education & Awareness Initiative.


Investors should deal only with Registered Mutual Funds, to be verified on SEBI website under Intermediaries/Market Infrastructure Institutions". Refer for details on completing one-time KYC (Know Your Customer) process, change of details like address, phone number etc. and change of bank details etc. For complaints redressal, either visit or SEBI's website


Disclaimer – This information is for general information only and does not have regard to particular needs of any specific person who may receive this information. L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates; does not guarantee/indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax and financial advisors before investing. Recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved.

The returns from mutual funds are subject to market fluctuations while returns on savings account, fixed deposits and bonds are fixed.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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