Hi,
It is really nice that you are thinking to start investing. My suggestion is first to check below:
1. your risk appetite, I mean Highly risk, moderate risk, and low-risk returns will depend accordingly. eg: if you are below 30 age and financially independent you can consider medium to high-risk taker
2. In my view an investment without a goal is unfruitful. So keep a goal it might be anything like wealth creation, tax saving, future education, vacation, car, property ... etc
3. Tenure - time period
after deciding 1,2 and 3 then you can search for where to invest. There N number of avenues to investment,
starting for traditional FD's and RD's to ULIP.
eg: If you am a very low-risk taker and want to save tax - Go for 5 years FD. return will be less. very less considering inflation and tenure 5 yrs - moderate. interest is taxable but 100% invested amount is safe (ideal scenario).
Next question: How much?
again depends on the avenue selected
if you go for mutual funds minimum of 500 I guess in SIP Mode. for Lumsum it will depend on the fund you selected less than 5k max funds.
if you go for conventional Tax saver FD it's 10K for a 5 yrs lock-in period.
Next Question: why ??
if you are looking for why to invest - as said earlier it is the objective of investment. I mean goal.
if you are looking for why to invest in a particular option - every option of investment is designed to fulfill the need of users subjected to conditions and other factors.
