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Investing Cheat Sheet

Basics for Indian retail investors. Not financial advice — consult a SEBI-registered advisor for personalised guidance.

What is SIP
Systematic Investment Plan — fixed amount auto-invested in mutual fund monthly. Rupee cost averaging
Minimum amount
₹100–500/month (most funds). No upper limit
How to start
Open account on Zerodha/Groww/Kuvera (direct plans, zero commission). Link bank. Set mandate
Direct vs Regular
Direct plan: no distributor, lower expense ratio (0.3–0.8% less TER). Always prefer Direct
Step-up SIP
Increase SIP amount annually by 10–15% in line with salary hike. Significantly improves corpus
SIP start date
Set 2–3 days after salary credit. Saves before you spend
★SIP on day 5 of month vs day 15 vs day 25 makes no statistically significant difference over 10+ years. Just start.
AgeEquity %Debt %Gold/Other %Notes
20–3080–90%10–15%5%Long horizon — maximise equity. Risk is your friend early
30–4070–80%15–20%5–10%Start adding debt as responsibilities grow
40–5060–70%25–30%5–10%Shift gradually; preserve capital for goals
50–6040–50%40–50%10%Capital preservation more important than growth
60+20–30%60–70%5–10%Income-generating; minimal equity volatility
★THUMB RULE: Equity % = 100 minus your age. Adjust ±10% based on risk tolerance and stability of income.
CategoryRiskReturn ExpectationFor Whom
Large CapLow–Medium10–12% CAGR long-termStable core holding; less volatile than index
Index Fund (Nifty/Sensex)Medium10–12% CAGRPassive — tracks index; beats most active funds long-term
Flexi Cap / Multi CapMedium11–14% CAGRFund manager moves across cap sizes; good all-rounder
Small CapHigh12–18% CAGR (volatile)Long horizon (7+ yrs), can stomach -40% corrections
ELSS (Tax Saver)Medium11–13% CAGR3-yr lock-in; 80C deduction up to ₹1.5L. Best tax+growth combo
Liquid / Money MarketVery Low6–7% p.a.Emergency fund; better than savings account interest
Debt / Short DurationLow6–8% p.a.Short-term goals (1–3 yrs). Better than FD post-tax (if low bracket)
  • DO: Start early, invest regularly, stay invested through corrections
  • DO: Review portfolio annually, rebalance if allocation drifts > 10%
  • DO: Keep 6-month emergency fund BEFORE investing
  • DO: Insure yourself (term + health) before investing surplus
  • DON'T: Time the market. "Market is too high" = missed returns. Invest systematically
  • DON'T: Withdraw SIPs in a correction — that is when you buy cheapest
  • DON'T: Put > 10% in any single stock or sector fund (concentration risk)
  • DON'T: Invest money you need within 2 years in equity