I have just started investing, do you think equity would be ideal for me or should I begin with debt mutual fund?

It all depends on Investment Time Horizon and Your Requirement of the Funds. Sometimes you can invest in both Debt & Equity as well for better Asset Allocation.

Equity investments are suited for long term investing (at least in excess of 7 years) for the goals which would require money after at least 7 years. Also, equity investments are meant for people who understand the volatility involved with this asset class.

Given that you have just started investing, you should first build an emergency fund (equal to 6-8 months of your monthly expenses) by investing the procceds in an ultra short/liquid fund. In addition, if you have any credit card outstanding, it's advisable that you square it off before starting to invest. After these 2 are done (retiring credit card outstanding and building an emergency fund), you should create a medium term fund (for goals occuring in 2 to 7 years) by investing ib corporate bond funds

Asset Allocation is the first step whenever you wish to start investing. Generally , thumb rule is 100 less your age should be the weightage of equities in your portfolio . However, it is advisable that you should seek professional help from an advisor to get a more personalised portfolio structure. What is most important , is that one should start investing as early as possible and have a long term approach to investing.  

This is depending on your financial goal. If your goal falls within 2 years you should not be investing in Equity. Rather Debt is a preferable option. In Debt category you may look for a Liquid fund or Short-Term Fund.

If the goal fall between 3 years to 6 years then go for Hybrid category. In case it is beyond 7 years then only go for Equity fund.


All the data/information shared above are opinions/ views that solely belong to the Mutual Fund Distributors. UTI Mutual Fund (acting through UTI Trustee Company Pvt Limited) / UTI Asset Management Company) owes no responsibility/ liability whatsoever in this regards. The information contained should not be construed as forecast or promise, and the only objective of this initiative is to educate the consumers to take a more informed investment decision. Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.



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