If I ask you, what is the right time to eat food, what would you say? I know, you will say, the right time to eat is when you feel hungry. Similarly, if you think, you need to get prepared for your future plans, when you feel to earn for your responsibilities before your retirement, this is the right time to start your investment. In fact, the best time to start your investment is now.
When you ask different people, the same question, they will say, market condition is not good, don’t invest, mutual fund schemes are not performing well, mutual fund investments are risky, it will eat all your money, and many more things negatively.
These people know about the mutual fund, only up to surface level, they have never tried to get in the deep and understand how beneficial mutual fund investment is!
Well let’s come to the point, right time to invest, this very thing doesn’t depend on the market condition, risk association, or performance of any particular mutual fund scheme, obviously before investing, investor should go through an analysis process, but his/her investment start should never be based on these market fluctuations. The market is bound to fluctuate it’s the very basic nature of market.
Market performance is an unpredictable thing, and it is obvious that a thing that is random can never be a parameter to start your future investment plan. Similarly, the performance of any mutual fund scheme is directly affected by market performance, if the market performs well the scheme performs good and if the market performs badly, the scheme performs badly.
Here noting point is, whether the market performs good or bad, you don’t have to bother, you want to invest, you can start your investment, rather I would say, there is a success mantra related to mutual fund investment, “the early you start, the longer you stay, the more you earn”.
Understand it with an example, suppose a person invested in a particular mutual fund scheme, whose performance was average from last two years, but after five years the same fund market value performed so well and reached the height of sky, at the time of redemption of units, the person earned a good profit on his investment.
Points to be noted from an example:
- The person started investing when the market was low.
- The person stays invested for a long time.
- A person’s mutual fund scheme performance enhanced with the flourish of the market.
For example, you can conclude, your investment start should never be based on schemes performance or market condition, it’s your cup of tea, and it's you who have to decide when to sip it!
People separate themselves from investment due to the risk of loss of their invested money. Well, this is a matter of discussion, and you can overcome this risk, only you have to do SIP.
- SIP investment in mutual funds helps an investor to reduce the risk of loss of invested money, to a good extent, by the disciplined investing method.
- Rupee Cost Averaging helps its SIP investors, by averaging their total investment, and let them buy more units when the market is low, and fewer units when the market is high. In this case, investors get the benefits, of buying more units at a low price.
- Long-term SIP investment in mutual funds can be a good choice, for those who are confused and is in search of the right time to invest, it plays a vital role in reducing the effect of market fluctuation on one’s investment returns. So, if you are also afraid of market fluctuations, no worries, invest in long-term investment plans, and see how your invested money multiply itself over a fixed period and earn benefit for you!
As of now, you must have understood that investment start is not a subject confined to market performance and risks, what are you waiting for, the more you will wait, the less you will earn, better start it today, much better, start it now, because, now is the best time to start your investment!
Happy investing!
(Mutual Fund investments are subject to market risk. Kindly read all the related documents carefully before investing. Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns)