Where beginners in mutual funds should invest in the time of Covid-19

The key is to develop an asset allocation plan and then fill each slot with an appropriate fund

The mutual fund industry added more than 8.1 million folios in 2020-21, higher than the nearly 7.29 million it added in 2019-20, according to data from the Association of Mutual Funds in India (Amfi). Despite a pandemic raging throughout the year, new investors continue to join the industry and use mutual funds as a vehicle for securing their financial future.

These new investors must, however, make the right start. If they have a bad experience in their initial foray, they could get turned off mutual funds forever and lose out on their potential for wealth creation over the long term.