Is it right time to invest on Mutual Fund?

Question

Is it right time to invest on Mutual Fund?

Answer 1

I would say, better in SIP if you might think of it.

Markets seem to be close to lower levels - in the sense the amount of its lower level is not as huge as the upper levels that are seemingly possible.

PS: Try SBI Magnum Contra Balanced fund if you are looking at SIP. You may compare the performance of MFs at http://www.mutualfundsindia.com/

Answer 2

Nobody knows what the market will do in the coming months, or even years.

What we do know is that historically, stocks (and mutual funds that invest in stocks) have been the fastest growing asset class over the LONG TERM (5 or more years).

So, if you have 5 or more years to invest, then yes - "Now" (whenever "Now" may be) is ALWAYS the right time to invest.

If you're worried about market downturns in the coming year or so, you may want to dollar-cost average (DCA) your investment - divide your assets into 6-12 equal amounts, and invest those smaller amounts each month for the next 6-12 months.  That way, you can take advantage of market dips during that period.

I hope that helps.  Good luck!