To answer the question is quite simple and straight forward, When to Start Investing in Mutual Funds ?
The answer is “Right Away”. And this is true. There is no better time than ASAP when it comes to investing. There is always an opportunity and a window to invest in mutual funds. Mutual Fund returns are linked to larger market volatility and no one so far has been able to time its movements. If some one is saying that he has invested at a low of the cycle, it was just a chance.
All you need is trust your hunch. Even in the longest recession cycle also,the losses in the MFs are much much less than the overall market. MFs being actively managed, can reduce volatility. In fact the fund managers also trust their instincts in addition to their Knowledge. The moot question is where to start investing. Assuming you are new to the whole business of Mutual Funds, you will hear many voices on the plethora of business channels and get really confused. In addition there is jargon used by these experts which is fairly latin to a common man like you and me. Goddess Lakshmi is there to support all of us.
One expert says hold, one says sell and a third one says to buy. All are respected and have a reason to justify. The reason behind this diversity is that they use different tools and aim to time the markets. Its better not to leave it alone to them before even we start investing. If you are looking for an advise which is unanimous, you will keep waiting endlessly. When you have money lying idle in your SB account and earning a pittance for you, its better to start making your money work for you.
Instead of asking When to Start Investing , one must look at How do i spread my investments. Have a strategy of investing and keep following your strategy. There is nothing as a blunder which is going to make you pauper overnight. Choose the right fund for your risk appetite and start investing.
Caution before closing the article. Trust your hunch and Do not be reckless with your investments. Its your own money and you need to take a decision. If you feel that i am still not comfortable to get in to a mutual fund, so be it. Do not be swayed by any one except your hunch. When to start investing shall be based on completely on your comfort levels.
Disclaimer : These are completely my personal views and I am not a certified adviser for any financial product at the time of writing this article. It is my experience of reading and going through various information available. Readers are advised to take their own additional information before making their own choices.