What is the best way to start investing as a beginner in India?

For most beginners, starting a monthly SIP (Systematic Investment Plan) in equity mutual funds or index funds is the simplest and most effective approach.

How much should a beginner invest each month?

A practical starting point is 10–20% of monthly salary for early career savers; aim for 20% as a sustainable baseline and increase gradually.

Should I use PPF or SIP first?

Build a 3–6 month emergency fund first; then split your investments — use SIPs for long-term equity exposure and PPF for a stable, tax-efficient debt portion.

How much of my portfolio should I keep in gold?

A common guideline is 5–15% for gold (SGBs or Gold ETFs) as a hedge against inflation and portfolio volatility.

Can I calculate expected SIP returns on this site?

Yes — use our SIP Calculator to estimate maturity value, total invested and expected returns based on monthly SIP, annual return and tenure.

Best Investments for Beginners in India (2025 Guide)

Clear, practical options to start investing in India — SIPs, index funds, PPF, gold and emergency funds explained for beginners.

Start with SIPs — The Easiest First Step

For most beginners, SIPs (Systematic Investment Plans) in equity mutual funds or index funds are the best starting point. They let you invest small monthly amounts, build discipline, and benefit from rupee-cost averaging.

Try our SIP Calculator to estimate returns for any monthly amount.

Index Funds — Low-cost, Reliable

Index funds track market indices like Nifty or Sensex. They are low-cost and remove the risk of picking the wrong active fund. For beginners, an index fund + a small active allocation works well.

PPF — Safe Long-term Core

Public Provident Fund (PPF) offers guaranteed returns and tax benefits. Use it for the stable portion of your portfolio (15–25% depending on risk appetite).

Gold — Inflation Hedge

Keep 5–15% in gold (SGBs or Gold ETFs). Sovereign Gold Bonds are preferable for long-term investors because of interest payouts and lower custody concerns.

Debt Funds & Emergency Fund

Maintain a 3–6 months emergency fund in a liquid or savings instrument first. Then use debt funds for the conservative portion of your portfolio for stability.

Sample Starter Allocation

Beginner (First 3 years)
Equity SIP (Index) 50%, PPF/Debt 25%, Gold 10%, Emergency/Liquid 15%.

Next Steps

Build a 3-month emergency fund first.
Start monthly SIPs (even ₹1,000 helps).
Automate increases every 6 months.
Use the Smart Salary Investment Calculator for allocation suggestions.