For a beginner, the world of investing is vast and intricate, and often overwhelming. Stocks, bonds, mutual funds, fixed deposits, real estate, commodities, and lately, cryptocurrencies, are just some of the options you have. So, where do you start and how do you go about it?

Arguably, the simplest way of investing your money is in mutual funds because here, much of the thinking is done by professional fund managers. All you have to do is figure out which mutual fund suits your investment objective, and how much you’re willing to invest.

Here’s a simple guide to help you out. But before thinking of investment options, the first thing you need is a dematerialised account, or a Demat account.

Step 1: Create Demat Account

A Demat account is a digital account in which all your share investments, mutual fund investments, and bonds will be recorded. Opening a Demat account is very easy and quick, especially with a modern platform like Kotak Neo, where the account opening takes just a few minutes.

Step 2: Choose The Investment Method

Once the demat account is active, there are two ways you can invest in a mutual fund:

Lumpsum: This is a one-time investment. If you happen to have some cash, say a bonus, a tax refund, or just extra savings, you put it into the fund all in one go and let it get to work.

SIPs: These are Systematic Investment Plans, which means you’re committing a fixed amount (usually lower........

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