I am 20 years old. How do I start investing in mutual funds?

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I am 20 years old and I want to start investing in mutual funds. What should I do? And, which schemes should I choose?
–Aditya Ahuja

Pankaj Maalde, a certified financial planner, responds:

Considering your age, you can take high risk for your long term goals, say, above 10 years. If so, you may consider investing in equity mutual funds. Equity comes under high-risk, high-return category and requires a long investment horizon. I would advise you to invest in a multi cap fund. Multi cap funds invest across sectors and market capitalisations. Invest in the growth option and avoid the dividend option. You should review the performance of the schemes every year. Avoid investing a lumpsum and go for the monthly SIP–route to minimise the risk.