When the equity market is running south wards, is it advisable to invest in mutual funds.?

Question

After January,08 the equity market is highly volatile. All the FIIs are started withdrawing from the capital market. At this juncture all the mutual funds schemes are showing very low NAVs. How do you feel investing in Mutual funds at this stage. Whether one can invest in MF or wait for some times till the market get corrected.l

Answer 1

depends on your time horizon, if its like 8-10 years, its fine

  and if its less than that, then i dont know.

Answer 2

You can consider investing in MFs as well as in the Equity market.  For equities, u have to be a bit cautious as markets have not found the bottom yet.

With MFs, u can consider start investing in the SIP option wihth less amounts for each payment. This way u will be in a safe horizon

Answer 3

There are types of mutual funds

1. equity base

2. balance

3. liquid

It is good to  invest in liquid MF when market is running southward.

When northbound go for equity and balanced MFs

Answer 4

current market is volatile but it will reach good level soon

If you are long term investor then you will got good profit

start from mutual fund

http://shaktibanna.blogspot.com/2008/07/...

then jump in share market

http://shaktibanna.blogspot.com/2008/06/...

Answer 5

if u can able to spot a potential stock at a deep discount. then u can consider it.

Answer 6

Equity markets are ALWAYS volatile - that is why mutual funds are best used as a long-term (over 5 years) investment.



Market timing is a fool's game.  The market may go lower (or it may not), but it is a fact that equity fund shares are much cheaper than they were a year ago.  From that perspective, now is a GREAT time to invest!  Remember - buy low, sell high.  It is astounding how many people do the exact opposite.

If you're worried about further equity declines, divide your investment up into 5-10 equal parts, and dollar-cost average (invest those equal amounts each month) over the next 5-10 months.  That way, you will be able to take advantage of further market declines (if they happen).

I hope that helps - good luck!

Answer 7

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