Hello Readers! 

Are you among those investors who have been planning for a long-time to invest there, but are only looking for a correction in the market, to initiate your investment? Well, the SENSEX and NIFTY have been trending high for the last some weeks. And with these high trends in the market, one begins to question the merit of incremental returns from here on.

People think that it's better to keep your cash idle when the market trends high and wait for a correction to invest at lower prices. Well, lower levels in the market might come along for a better buying opportunity shortly. However, if you plan to invest in the long term, then investing as per market trends might not be so good perspective.

Experts say if you are planning to invest the incremental cash flow then do it today, do not wait for a market correction and prices to go down. Various reasons support this perspective and are discussed below.

Money Lying Idle Can Be Spent If Not Invested! 

Market trends, be it high or low are unpredictable, it could take weeks for the benchmark index to correct or it could correct in a matter of a few days. In the wait for a correction to happen, you keep your money lying in the bank account that usually finds another reason to get spent on. And ultimately what you saved is spent because it Is not invested on time.

Sometimes you also end up investing this saved money invested in some other immediate opportunity that may or may not fit in with your overall portfolio objective. So basically, it's better to meet a financial adviser today, and plan your investment at the right place before you end up spending your savings or investing it in a not-so-worthy financial instrument.

Now Is Always Affordable Than Later! 

The more you delay in starting your investment, the more amount you will be required to invest monthly to create a good corpus. For example, suppose you started investing in the mutual fund for long-term say, 20 years via monthly SIP (Systematic Investment Plan).

Rs 10,000 invested at 12% annually for a period of 20 years will make you Rs 1 crore at the end. If you delay this start by 10 years you will have to shell out Rs 45,000 a month to make Rs 1 crore in the remaining 10 years. So basically, delaying your investments, in the long run, would demand you a high amount of SIP invested per month to create your required corpus. And a high amount of SIP would become difficult to manage with other necessary household expenditures.

Let Us Conclude! 

If we look at the above-mentioned reason then keeping money idle in a bank account and waiting for a market correction is more costly than investing now and catching the wrong end of a correction. So basically, do not wait for a market correction to happen, analyze your goals, plan your investment, and start investing. If you invest patiently and regularly, over time the results will speak for themselves.

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For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).