Here is how a first time investor should look at starting investing in mutual funds- 1. Define your horizon - Any investing avenue cannot be selected till you are not aware of your investment horizon. Many a times when you when you make investment without any specific goal behind it you get inclined towards the returns and so you get lured by the best funds of today. Such decisions has higher probability of going wrong. So it’s wiser to define clearly what is the time period you can hold your investments i.e. when you will liquidate this money. This specification will tell you whether you are looking for a short term, medium term or a long term investment. 2. Assess your risk tolerance- Each one of us has our comfort ability with volatility of markets. We may divide it into aggressive, moderate or conservative but there are host of factors which decide this. While making your first investment if you have dependents or liabilities then you may not be too aggressive. Similarly if yo