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  • Category: Mutual Funds

    What is the correct time to invest in mutual funds?


    Have a query about investing in mutual funds? Find advice from experts here.

    Nowadays investment in the mutual fund looks the better option than the traditional investment. These are available in various categories. Guide me to finalize my investment.

    I want to know that what will be the correct time to invest in the mutual funds?

    Is there any ideal time to start?
  • #141088
    I think instead of finding the correct time, just invest. The reason being no matter which investment you do, low return or high return, you need to start somewhere. Let's assume you invest into low return product like PPF. Investing into it for say 10 years is better than not investing at all.

    Same with mutual fund - pick one debt fund and one equity fund. And start with the amount say 5000 Rs. You can get much ahead regardless of the return on investment. I have found that some of the percentage that amount such as that can be more than enough to save in mutual fund.

    There are sites like say fundsindia and few others. They can calculate your investment horizon and investment and show you when and how much you should invest. I suggest you to take a look at those tools. Find out your risk and the future goals. And based on those goals you can decide how much effective decisions you can take. I'd suggest you to keep the moderate money in both equity and debt mutual fund. Don't invest all the money in equity even if it sounds too goo.

  • #141092
    Timing of investment in equity market is simply not feasible. The most famous investors like Benjamin Graham, Warren Buffet, Charlie Munger, Rakesh Jhunjhunwala always advise against timing the market. So, what should a common investor do?
    The two important things for common investors are to judge their own risk profile and to find their time-horizon. Risk profile means how much risk an investor can take. The time-horizon means how much time does he/she have to fulfill his target. Based on these two parameters, an investor must chose suitable mututal fund(s) and start investing through SIP route.
    The basic advantage of the SIP is that an investor does not have to ponder over the suitable time to enter the equity market. At the same time, he can take advantage of the market downturn.
    Summarising the above facts, I must state that an investor must not attempt to time the market. Investment in mutual fund must be initiated immediately through SIP route and the SIP must continue for at least five years to get real benefit.

    Caution: Explosive. Handle with care.

  • #141126
    As regards to right time to invest in the mutual fund, this seems to be a confusing factor and by having such impression would allow you to go ahead in this direction. Instead of having any reservation, we have to select a few funds and should remain invested for at least five years in order to reap real benefits. There are certain funds such as HDFC balanced fund, Birla equity fund, ICICI Prudential Fund covering separate equity and Balanced fund, Franklin equity fund etc.
    The best way would be to choose a SIP fund where there is allocation of both equity and debt fund in a certain ratios and are flouted by different promoters and choosing a fixed amount of money say 2000 for five years would offer you a handsome return sometimes beyond 15 percent which cannot be achievable in a fixed deposit account invested in Banks.

  • #141141
    If you are a real investor, and not a trader interested in quick profits, then you need not wait for a 'right time'. This is because there is nothing as right time.
    If you have decided to invest and you have spare money and aware of the risks involved in such investments, then you may start right now.
    You may do some homework reading financial magazines about mutual funds and then you may decide o which MF to invest. It is always better to invest by spreading your risks. You must not expect miracle growth the next day. You have to stand invested patiently. However you should also keep update and aware of what is generally happening in MF s and financial sector. You should first chose established MF s with a good track record .
    So take that now is the right time and start investing.
    Generally those who go on delaying, are later regretting 'oh if only I could have invested...". At least you should not regret.

  • #141275
    If you are a new investor and you are not having much experience and knowledge about the intricacies of share market/ mutual fund, then it is better that you invest regularly by purchasing MF units in small chunks or through SIP and wait for some considerable time to reap the benefits.
    There are various schemes by different fund houses which give different returns and one has to see what is the risk profile we are looking at as equity oriented schemes will have a bigger risk than the debt/ bond ones.
    If you are looking for tax benefits other schemes are there to help you.
    Now as we know share market behaves in a very strange way and most of the times our predictions go wrong. The market has a tendency of fluctuation and sometimes the fluctuations are so huge that either there will be a bull rage in the market and every one will be rushing to buy stocks or when it is in bear phase people will become panicky and start selling the stocks they hold. It has happened many times in past and as history repeats itself it is going to happen again and again.
    When market fluctuates, mutual fund NAV (net asset value) also fluctuates, though not to the same degrees as shares because MF units NAV is based on average value of so many shares where this scheme is invested.
    An experienced and shrewd investor can take advantage of this situation and can sell and buy his MF units at appropriate times. This requires not only a daily monitoring but also spending some time for it. With practice and experience one can expertize in this area.

    Knowledge is power.

  • #141947
    Hi,
    If you want to increase your wealth by investing in Mutual Funds it is the high time. As now you can see that the interest rates are lowering in the fixed deposit schemes by various nationalised bank, it is not an intelligent decision to invest all your money in such schemes. And in near future it can decrease more from the current rates.
    Mutual Funds are growing sectors, which invests your money in different fields. You can invest a small amount of money in Mutual Fund in every month. Choose between diversified fund or equity funds or debt funds in which you feel comfortable. If you want to save tax then you can go for ELSS schemes. So, to fight against the inflation in coming years you must have to invest in Mutual Funds. So, every time is right time to invest in Mutual Funds.


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