Is now an okay time to invest in mutual funds?

Question

We have some money in savings and want to move it to mutual funds...divirsified..funds that have been around since the 30's and have an average return of 12%.

Answer 1

dollar kost averaej=put same number dollars in evree month.

Good start plaes is index fund such as 500 index.

Stoks down 20% from last September.  Mae go down nuther 10% over next 6 months.

But bad tu tri tu time market.

remember stoks=long term invest.  That meen 5-10 yeers.

If yu weree bout its value go down 15% over last 6 months, stae awae.

Answer 2

No. I am already losing money in a mutual fund after less than a year. Stay away from this mess.

Answer 3

Absolutely,but do not put all your money in one go.Invest gradually,over a period of at least fifteen days.E.g.,if u have investable money of  say one lac,invest @Rs.5000/- each day in diversified equity funds for twenty days.This will help u  to accumulate more units ,if the market falls further and average the purchased units, if the market rises further.The question of 12% return although is not assured,but experiences suggest over a period of one year it "MAY" give return of at least 50%.The theory of "THE TIME OF MAXIMUM PESSIMISM IS THE TIME TO BUY AND MAXIMUM OPTIMISM IS THE TIME TO SELL" can aptly be applied in this scenario.Also do not put all the eggs in one busket,i.e., do not invest all the money in one particular mutual fund.

Answer 4

No! No! No!

The market is tumble now , better stay off the market till  2009. Protect your capital now rather worry your capital return. You will regret if you invest now!

Answer 5

It is okay to buy anything if the price is right. I think the market will not go up anytime soon.

Answer 6

Mutual funds should only be used as long-term investments (5 years or more).  As such, it is never a "bad" time to invest.  In fact, when the market is down, you could think of it as a sale - fund shares are much cheaper now than they were a year ago.

It is true that they could fall even further before they come back up, but if you have that long-term time horizon, you shouldn't concern yourself with short-term swings in the market.

Also, when you invest, sign up for an automatic monthly investment to come from your bank account - you'll be amazed at how quickly your assets will grow!

I hope that helps.  Good luck!

Answer 7

Yes, if you are investing for long-term gains.  If your investment horizon is less than five years, you may not want to invest in funds now.

Answer 8

First off, I  want to congratulate you on asking the opposite question that everyone else is asking right now, which is, "should I DITCH my mutual funds?"   Investors tend to buy high and sell low, and now that the market is slumping, everyone wants to sell.  After the market's been on a tear for a while, everyone will want to buy.  Just the opposite of what they should be doing.

If you're a long-term investor (key is LONG-TERM), now is a much better time to buy a mutual fund than it was a year ago.  That's not to say there may not be more pain for a while, but you should be fine over the long haul.