Well, it is easy to invest in mutual funds nowadays. You can directly download apps or ask an agent to assist you for your investment. If you’re investing in mutual funds it is better to have a Systematic Investment Plan (SIP). Apps such as 5paisa.com or IIFL provides the best interface and great assistance in making your investment experience better and ensures minimal risk.

How does it work?
To know what should be your investment under mutual funds firstly, you should know how it works. Mutual funds hold the power of compounding which means, you earn interest on interest.

Now, if you want a corpus of Rs. 2 crores in 20 years. The first question is what should be your primary monthly investment?
If you’ll make an initial investment of Rs.9000-/ per month and thereafter increasing investment by Rs.4000 every year, and assuming Rate of return to be 8.5%(annual) you will receive Rs2,20,00,000/- (approximately) in a period of 20 years.
The only thing that I want you to be aware of is, mutual funds are subject to market risk. The return we have considered here is on an average and may differ from actual future returns. There is always a risk associated with any investment, so consider that before making investments. To be precise, all the return mentioned above is estimated and not guaranteed.