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  • Category: Mutual Funds

    Best time for investment in Stock market or Mutual funds


    Planning to invest in stock market or mutual funds? Confused whether this is a right time to invest? check out advice and guidance from financial experts here.

    I would like to know from the finance experts about the best time for investment in stock market or mutual funds. On the recent downfall in stock market we have seen a sharp correction in the prices.
    So, is it advisable to invest now in the low priced market? Is any more major movements are expected in the stock market and mutual funds on the face of Upcoming 2019 assembly elections.

    Please advice if it is a right time to start new investments in mutual funds or it is a time to exit from the mutual funds portfolio.
  • #149317
    As a downtrend is going on in the stock market now I think it is the best time you can invest. But you have to decide on the company in which you are going invest can be decided to base on the credentials of the company and the past history. You can go to the website of Karvy financial solution where they will give various investment options and their website is https://www.karvy.com/. Even you can chat with the financial advisers.They will give clarifications on various issues and doubts you have.
    drrao
    always confident

  • #149331
    To me, Every day is a good day to invest in stock Markets, but it depends on the tenure you want to invest in.. Unfortunately people misunderstood trading and investing and use the words interchangeably..
    It is clearly evident that Markets fall from 11100 levels to 10000 levels and in case of any bad news it may fall towards 9400 levels.. The valuations are at very high levels and this correction is very good for the markets.
    As you have not mentioned about the tenure you want to to invest your money, I can only give you a general idea
    Over the next few months, We have series major events to watch out for
    1. Earnings - After the Demonetization and GST, Street has showed some recovery in Q3, But the the investors are keen in observing whether Companies continue the trend or not
    2. Tax on Long Term Capital Gains There will be further selling in the markets in the last week of the March due to the recent introduction of the Tax on Long Term Capital Gains.
    3. Uncertainty over 2019 Elections There is an uncertainty over the upcoming 2019 Elections which will have direct and/or major impact on the Stock Market direction.

    So, you should start invest in the quality stocks or mutual funds for the long term Wealth generation. You can also accumulate the stocks if they fall further on quality counters.

    Happy Investing.

  • #149334
    The best time for investing is any time when you can spare some money for investing.
    If at all people can perfectly predict the best time for investment in stock market, then we would never have heard any one losing. In fact it is one man's loss that becomes another man's gain. That is stock market. Every one is a winner or gainer only when the stock prices are going up every second, every hour, and every day for ever. That is an impossible Utopia. When there is a rise, there can be a fall also. That fall can again start for rising in due course. So it is a cycle of gains and losses.
    However with proper planning, patience and prudence one can definitely minimise losses or have reasonable gains without much losses.
    Mutual fund investment is one way to safeguard high losses. In the same way the gains can also be relatively lesser than direct stock market investments.
    For a beginner Mutual Funds are relatively better, as the fund institution has its own professionals to make suitable decisions on investing the collected funds from retail investors.
    As of now there is an overall price reduction in the stocks. However the same can change when you read this answer, if some unexpected causative factor happens. But generally we can take that after sometime the stock market will see gradual rise. There are certain times when you can have some guess and the same may be correct.
    For example, the foreign investors usually withdraw from market before Christmas and year end and take away the money by profit booking. So the markets may see some rise slightly before the Christmas period. At least for about a month and half, they will not be making huge investments. So the market will remain relatively dull and/or steady for that period from the last week of December. Those retail imvestors may use the opportunity for investing. Similarly if they should sell, ii should be before Christmas in December, by middle of December by monitoring the prices and market.But this simple regularity can go haywire if some influencing event happens.
    Political factors influence stock markets. The small trend has now shown itself in the market. The prices have come down. So this can be taken as an opportunity for investing. But one should be very careful in selecting the company and sector. Moreover one may wait for two years to see good gains coming provided no political shocks happen. But political factors are just but one factor. There are many other factors too. If the North-South Korea co-operation becomes a better reality, and if US-N Korea have dialogues and patch up the that will boost the international markets, and it can reflect here too.
    Similarly taking situations, one can see various new schemes, especially ELSS ,tax saver schemes, opening up by January-February-March. This time can be used for tax saving related market investments.

  • #149366
    Nobody can time the market. The thing with timing the market is that it can't be consistent with all of us. For example there are market crash times where people buy stocks of promising companies. And some people try to exit the market while it has loss. So be it mutual funds or the stocks., you have to buy the stock or the funds of the steady and the reliable sectors and then sell when the market is performing well. That's the only fundamental thing you can time about it. And another thing is that there does not seem to be best time on investing into the market for stocks or mutual funds. Keeping that aside pay attention to global and local politics. As that seems to be having impact on your investment. And then invest in sectors which are least likely to be affected.

  • #149423
    The best time and the worst time in the stock market is only on retrospect. Like for example, today after the fear of the trade wars between US and Japan the market has dropped, Rs 1.57 lakh crore of the investors wealth has been lost today. Mr. Raghuram Rajan, has stated that the implications of this are going to be huge, if this trade war escalates. So for those had invested, it's not good at the moment but for those who want to invest, it's good to start. So, timing the market is like trying to catch a falling knife and can have huge loses.

    Few things to remember when trade in stocks or equities
    1.Never invest so much that you lose sleep, invest something that you do not need in a hurry.
    2. Never invest in a lump sum (this concept is only for FD)
    3. Plan,research and study the stocks before you get into it.
    4. Start with Mutual funds and then graduate to specific stocks
    5. Invest in tranches and spread it across to spread the risk also.
    6. Assess your risk appetite, higher the risk taking atitude, higher would be the gain and so also the fall.
    7. Be discplined and start, I would say buying a few numbers of the stocks that you have studied and narrowed down.
    8.At times of uncreatinity like this gold and liquid cash are better than stocks and mutual funds.

    Likewise, we need to know which sectors to avoid, right now the banking sector is on shaky grounds. The market is going through a correction phase. Such drastic falls although scary, are good in the long run, this means that the hyped up prices based on sentiments, good news is taken off and we are closer to the real value. This means the risk of a further drop would be there but the chances of upward movement is much larger.

    I wouldn't say we should exit mutual funds now, start choose a couple of hybrid funds that appeals to you and invest in a SIP mode.


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