How Beginners Can Start SIP Investment With the Right Mutual Fund Guidance
Starting an SIP investment can feel overwhelming for someone who is completely new to mutual funds , but financial advisor Harshvardhan Roongta believes the journey becomes much easier when beginners understand the basics and seek proper guidance. Speaking to young investor Pragati Singh, a BA student, he explained that a smooth and positive first SIP experience is key to building long term investing confidence. He emphasizes that before choosing any mutual funds, beginners must understand their goals, time frame, and risk appetite to make smart and confident decisions for wealth creation.
For anyone new to SIP investment, the process may initially appear complicated, but with the right approach, it becomes one of the simplest ways to build wealth. Roongta advises that beginners should first learn about essential concepts like financial goals , risk capacity, and investment horizon. As more young earners and students start exploring mutual funds for long term investing, choosing the right SIP investment is crucial for avoiding confusion and ensuring a stress-free financial journey.
During a recent episode of The Money Show on ET Now, Pragati Singh from Raebareli sought clarity on how to start her SIP investment and which mutual funds she should consider. Harshvardhan Roongta from Roongta Securities answered her questions and explained the steps every new investor should follow. His suggestions apply not just to her but to anyone looking to begin their first SIP for wealth creation and financial planning.
Roongta highlights how important it is for a beginner’s first SIP investment experience to be smooth and reassuring. He explains that a positive start builds confidence, while mis-selling, confusion, or unrealistic expectations can discourage investors early in their mutual fund journey. Because of this, he stresses that understanding the basics before starting an SIP is extremely important for long term investing success.
“Imagine you just come into the investment world and suddenly you feel that something has gone wrong because you were not aware, you were either cheated, or you have not understood what you were doing, that kind of a scar remains for the rest of your life and you will never feel confident about investing,” Harshvardhan Roongta said.
Roongta further explains that before selecting mutual funds for SIP investment, beginners must know three essential things: their time horizon, their risk appetite, and their financial goals. These investment goals could include saving for education, starting a business, buying a home, marriage, or even retirement planning. As he mentioned, “There could be different goals that you are saving for. Keeping all these parameters in mind, there are different kinds of schemes that will be suggested.” This makes proper mutual fund selection much easier and more aligned with long term investing plans.
He also breaks down which types of mutual funds work best for different investment horizons. For short-term goals, he suggests debt funds. For medium-term goals, hybrid funds with both equity and debt are suitable. And for long-term wealth creation, equity funds through SIP investment are ideal due to their strong compounding power. Young beginners, especially students like Pragati, have time on their side, which makes equity funds a practical and rewarding choice for SIP for beginners.
Harshvardhan strongly recommends taking the help of a financial advisor, no matter how small the SIP amount may be. He explains that a financial advisor can guide new investors through goal setting, risk assessment, mutual fund selection, and overall planning. This not only simplifies the SIP investment process but also ensures that beginners feel supported and confident as they start long term investing.
“Additionally, I will suggest that irrespective of the amount that she wants to invest, it could be a small amount that she wants to invest, consult an advisor who can guide you into this entire process and you enjoy the journey, your first experience should be very positive and nice so that you get confidence and you can enjoy this entire journey rather than just not be happy about what happened with you,” the expert said.
Pragati’s choice to begin SIP investment early is a wise decision. Starting during her college years gives her more time to benefit from compounding, market growth, and financial discipline. With clarity on her goals, risk profile, and investment horizon, along with expert advice, her SIP journey in mutual funds can be smooth, positive, and rewarding. This sets a strong foundation for long term investing and future wealth creation.
For anyone new to SIP investment, the process may initially appear complicated, but with the right approach, it becomes one of the simplest ways to build wealth. Roongta advises that beginners should first learn about essential concepts like financial goals , risk capacity, and investment horizon. As more young earners and students start exploring mutual funds for long term investing, choosing the right SIP investment is crucial for avoiding confusion and ensuring a stress-free financial journey.
During a recent episode of The Money Show on ET Now, Pragati Singh from Raebareli sought clarity on how to start her SIP investment and which mutual funds she should consider. Harshvardhan Roongta from Roongta Securities answered her questions and explained the steps every new investor should follow. His suggestions apply not just to her but to anyone looking to begin their first SIP for wealth creation and financial planning.
Roongta highlights how important it is for a beginner’s first SIP investment experience to be smooth and reassuring. He explains that a positive start builds confidence, while mis-selling, confusion, or unrealistic expectations can discourage investors early in their mutual fund journey. Because of this, he stresses that understanding the basics before starting an SIP is extremely important for long term investing success.
“Imagine you just come into the investment world and suddenly you feel that something has gone wrong because you were not aware, you were either cheated, or you have not understood what you were doing, that kind of a scar remains for the rest of your life and you will never feel confident about investing,” Harshvardhan Roongta said.
Roongta further explains that before selecting mutual funds for SIP investment, beginners must know three essential things: their time horizon, their risk appetite, and their financial goals. These investment goals could include saving for education, starting a business, buying a home, marriage, or even retirement planning. As he mentioned, “There could be different goals that you are saving for. Keeping all these parameters in mind, there are different kinds of schemes that will be suggested.” This makes proper mutual fund selection much easier and more aligned with long term investing plans.
He also breaks down which types of mutual funds work best for different investment horizons. For short-term goals, he suggests debt funds. For medium-term goals, hybrid funds with both equity and debt are suitable. And for long-term wealth creation, equity funds through SIP investment are ideal due to their strong compounding power. Young beginners, especially students like Pragati, have time on their side, which makes equity funds a practical and rewarding choice for SIP for beginners.
Harshvardhan strongly recommends taking the help of a financial advisor, no matter how small the SIP amount may be. He explains that a financial advisor can guide new investors through goal setting, risk assessment, mutual fund selection, and overall planning. This not only simplifies the SIP investment process but also ensures that beginners feel supported and confident as they start long term investing.
“Additionally, I will suggest that irrespective of the amount that she wants to invest, it could be a small amount that she wants to invest, consult an advisor who can guide you into this entire process and you enjoy the journey, your first experience should be very positive and nice so that you get confidence and you can enjoy this entire journey rather than just not be happy about what happened with you,” the expert said.
Pragati’s choice to begin SIP investment early is a wise decision. Starting during her college years gives her more time to benefit from compounding, market growth, and financial discipline. With clarity on her goals, risk profile, and investment horizon, along with expert advice, her SIP journey in mutual funds can be smooth, positive, and rewarding. This sets a strong foundation for long term investing and future wealth creation.
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