Mutual Funds Sahi Hai? How my journey begins
A beginner’s real story of understanding mutual funds, overcoming doubts, and making the first smart move in personal finance.
You know that feeling when you're trying to make dal-chawal but accidentally put sugar instead of salt? That was me when I first started figuring out mutual funds.
I never thought I'd be someone who’d check a market app before Instagram in the morning. But here I am. A 20-year-old CFA Level 1 student, sipping my adrak wali chai, scrolling through NAV updates like it’s the latest gossip. Hi, I'm Mudra Dave. Like most middle-class students with a monthly income of ₹15,000 from my internship, I wanted to invest - but had no clue where to start.
I sat down, chai in hand, scrolling endlessly through Instagram reels and finance memes when a friend posted one that read:
"If you don’t make your money work while you sleep, you’ll work until you die."
It hit me like a splash of cold water.
Here I was, a CFA Level 1 student, surrounded by books with titles like Equity Asset Valuation and Financial Reporting & Analysis, and yet, I wasn’t doing anything with my money. I wasn’t investing. Not even ₹500. All I did was earn, spend, and occasionally save in a bank account that gave me interest too small to notice.
That realization felt like a wake-up call I could no longer ignore.
That night, I scribbled a question in my diary:
“If I know finance theory, what’s stopping me from practicing it?”
And that was the beginning.
Searching for a Starting Point
So, like every curious 20-year-old with a financial dilemma, I did the logical thing - I turned to YouTube.
“How to start investing with low income in India.”
That one sentence led me to a rabbit hole. I must have watched over 30 videos in a week. Some promoted stock trading and technical charts. Others swore by real estate. A few romanticized crypto, saying it’s the future of money.
But among all the videos, all the thumbnails promising “₹1 crore in 10 years!”, one word kept recurring: Mutual Funds.
Managed by professionals. Low entry barrier. Diversified portfolio. Long-term growth. Tax benefits. Flexibility. It all sounded too good to be true.
Overwhelmed by Options
I started digging deeper.
Soon, the confusion hit me harder than the 3rd chapter of any CFA textbook.
Equity funds, debt funds, hybrid funds, index funds, ELSS, small-cap, large-cap, mid-cap, multi-cap, flexi-cap, direct, regular, growth, dividend — it felt like being in a buffet with 200 dishes, and I didn’t even know what I liked.
I watched a video that recommended small-cap funds for “higher returns.” The next day, I read an article that said small-cap funds were “not suitable for conservative investors.” I felt like I was trying to solve a puzzle with missing pieces and no picture on the box.
Even worse, advice was flying in from all corners:
My uncle: “Real estate is the only thing that never fails.”
My cousin: “Try crypto - I made 3x in one month.”
A friend: “Just put it in FD yaar. Why take tension?”
I was drowning in opinions. That’s when I paused and asked myself a crucial question:
“What do I want from my money?”
Once I answered that, things started becoming clearer.
Mutual Funds Made Sense
Out of everything, mutual funds just made the most sense for someone like me.
Here’s why they clicked:
I could start small — just ₹500 or ₹1,000.
Diversification meant I wasn’t betting on one company.
Professionals were managing it — I didn’t need to be an expert on 50 companies.
Liquidity — I could withdraw when needed.
Automation — SIPs could run in the background.
It was like being part of a group project where the smart kid (fund manager) actually did the work. And you still got credit.
For someone who didn’t want to be glued to stock tickers or worry about daily market swings, it felt like the right balance between growth and peace of mind.
Direct vs. Regular – The First Fork
Next came the decision between direct and regular plans.
Regular plans seemed more comforting - distributors helped you choose and guided you through the process. But they came at a cost - commissions, higher expense ratios, and slightly lower returns in the long run.
Direct plans cut out the middleman. More returns, but more responsibility.
I was already neck-deep in finance studies. I figured if I couldn’t make this decision on my own, then what was the point of all that theory?
So I went with a direct plan.
Not because I was a finance wizard, but because I was ready to learn and take ownership of my money.
Picking My First Fund
I decided to start small — a ₹2,000 monthly SIP.
My goal was simple: long-term wealth. I wasn’t looking to double my money in a year. I wanted to build a habit and understand the process.
I opened a couple of fund comparison websites, filtered funds based on:
Past 5-year performance
Low expense ratio
High AUM (Asset Under Management)
Fund manager's consistency
Eventually, I chose a Flexi-cap Equity Fund with a growth plan.
I skipped ELSS (Equity Linked Saving Schemes) at first. A 3-year lock-in felt like a commitment I wasn’t ready for — like buying shoes without knowing if they fit.
And then came the moment.
I clicked “Confirm Investment” on the AMC app. It was official. I had become an investor.
The First Emotional Ride
The first few months? A rollercoaster.
I checked the NAV (Net Asset Value) every day. Sometimes, twice a day. If it went up by 0.5%, I felt like a genius. If it went down 1%, I questioned everything.
One time, the fund dropped by 3% in a week. I panicked. I googled “Is my mutual fund bad?” and even thought about pausing the SIP.
Then I read a blog that said:
“You don’t dig up a plant every day to see if it’s growing.”
It made sense.
I stopped checking. I started trusting.
And like that, I let the SIP do its job — quietly, patiently.
SIP Becomes a Habit
Once the SIP was automated, it became like a silent subscription, except instead of Netflix or food delivery, this one was for my future.
I didn’t feel the pinch. ₹2,000 didn’t seem like a sacrifice anymore.
In fact, it gave me pride. It made me more mindful of spending. I started asking myself, “Is this worth ₹500? Or would I rather let it grow at 12%?”
This small step taught me the power of consistency. Like going to the gym, the first month feels like nothing. But the real transformation happens over time.
Teaching and Learning
Soon, friends started noticing my growing interest in mutual funds. At birthday parties or late-night chai sessions, the question always came up:
“Bhai, kaunsa fund le?”
We created a WhatsApp group called “SIP & Chai.”
Every Sunday, we’d share one article, a podcast, or even a meme that explained finance in a fun way. Some friends started SIPs. Others just watched quietly.
I realized that when you explain something to others, you understand it better yourself.
Mutual funds were no longer just an investment. They had become a conversation starter, a movement, a mindset.
Why I Didn’t Choose Stocks, Gold, or Crypto
I get asked a lot, Why not directly invest in stocks?
Simple. I didn’t have the temperament or time to track quarterly earnings, read balance sheets, or follow industry news.
Gold? Too traditional. And honestly, I don’t relate to it as an asset for growth.
Crypto? I tried. I researched. But the volatility gave me anxiety. One day up 20%, next day down 30%. I didn’t want my wealth to depend on Elon Musk’s tweets.
Mutual funds gave me:
Professional management
Diversification
Compound growth
Lower stress
Time to focus on my studies and freelancing
In short, freedom.
From ₹2,000 to a Portfolio
Fast-forward a year.
Today, I invest close to ₹5,000 per month across 3 funds:
Flexi-Cap Equity Fund – for long-term growth
ELSS Fund – for tax benefits and discipline
Balanced Advantage Fund – for some stability
My portfolio isn’t explosive. But it’s steady. My CAGR is in the 10–13% range — and that’s more than enough.
What matters more is the habit I’ve built. Investing has become as routine as brushing my teeth. Just a lot more rewarding.
The Bigger Picture
Right now, I don’t have major responsibilities.
No EMIs. No dependents. No kids.
But I know what’s coming — maybe a wedding, supporting my parents, buying a house, traveling, starting a business.
Life will happen. And it will be expensive.
That’s why this journey isn’t about getting rich.
It’s about being ready.
Mutual funds are not just “investments” to me. They’re little soldiers I send out every month. Quietly working in the background. Fighting inflation. Building wealth. Preparing for the life I want to build.
Tips for Anyone Starting Out
If you’re like me — in your 20s, just starting out, juggling income and ambition — here’s what I’d say:
Start Small, but Start: ₹500 is better than ₹0.
Choose Direct Plans: Learn the ropes. Save commissions.
Go for Growth Plans: Let compounding do its magic.
Pick Funds Based on Goals: Not trends.
Be Consistent: SIPs are like gym routines. Results take time.
Track Quarterly: Don’t stress over daily NAVs.
And most importantly: Investing isn’t about timing the market. It’s about time in the market.
One Year Later
It’s been a year.
My portfolio has grown — not just in number, but in meaning.
I’ve become more thoughtful about spending. I now look at money as a tool, not a toy. I question whether that extra T-shirt is worth it, or if that ₹800 could be future ₹2,000 in disguise.
Mutual funds didn’t just change my finances.
They changed my mindset.
They turned me from a spender into a builder.
And honestly, that’s the best return on investment I could’ve hoped for.
The Quiet Power of Starting
I didn’t start with a lot.
Just ₹2,000 and a quiet intention to do better.
But a year later, I’ve realized — it was never about the amount.
It was about showing up. Every month. For my future.
Because building wealth isn’t loud.
It’s consistent. It’s patient. It’s personal.
And sometimes, the smallest steps create the biggest shift.
This is the wonderful video on Mutual Fund you should look at it once: