When you are just beginning your investment journey, investing in a mutual funds might seem a bit confusing. If you ask, how much should I invest ? However, there is no formula which can tell you the exact amount. Since every investor is different, their needs and income level are different. So, there is no ideal amount for everyone that they can typically invest.

But, here is a method which will help you to determine the amount which you should invest in mutual funds.

1. List your Financial Goals – This is your list of things which you need to accomplish when you have sufficient cash. For instance, it very well may be purchasing a vehicle, home, youngster’s schooling, retirement, etc. While distinguishing, you should be explicit about your objectives. Simply naming your objectives won’t assist you with accomplishing them. You should be explicit about the sum you expect for every one of your objectives. For instance, you intend to gather Rs 1 crore for your retirement.

To simplify, you can separate them into 3 parts – short-term, mid-term, and long-term. Short-term goals are those which you need to accomplish in a year. Medium-term objectives are those which you need to achieve in 5 years. Furthermore, long haul objectives are those which you need to accomplish following 10 years or more.

2. Amount you should invest in mutual funds- Now, when you have characterized the sum you expect for your objectives. The subsequent stage is to assess how much every one of your objectives would cost you later on.
For example, accept your month to month pay is Rs. 60,000. Assume you focused on 3 objectives – purchasing a vehicle following 4 years, your kid’s advanced education due in 15 years, and retirement following 30 years. This is the way you can design.
For your drawn out objectives like kid’s schooling and retirement, you can put resources into Equity Mutual Funds, expecting they will convey a 12% yearly typical return over the long haul. For your medium-term objective, it is smarter to consider a somewhat lower return. This is on the grounds that it wouldn’t be reasonable to put completely in Equity Funds in the medium term. So you are in an ideal situation putting resources into Hybrid Funds expecting a 9% typical yearly return.

You can likewise top-up your investment as you progress in your profession and witness an expansion in your pay. This will assist you with arriving at these objectives quicker and seek after a couple of different objectives too.


There is no fix rule to identify the amount you should invest into mutual funds consistently. Your investment sum ought to be founded on the financial objectives you need to accomplish and how much time you need to accomplish them. Recognize your objectives, focus on them and compute the amount you want to contribute consistently to accomplish your objectives. Remember to invest first and then spend.

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