Is this right time for MF investment?



Hello,

As now the world economy is in recession and down turn,
Is this is a good time to invest in Mutual Funds, coz
though NAV of a fund will be low at this time in general, the average return per month
will be negative (if we choose to invest MF in SIP) since market is bad.
so ultimately our avg annual return will be become less may be < 5% or can be negative also. In these situations, is this right time to invest in MF,, OR can we wait for some more time, monitor the funds and invest after few monthsif the market is picking up.I have plans to invest inEquity Diversified: HDFC Growth fund (G),SBI Magnum Contra (G) ICICI Prudential Infrastructure(G) ,DSP BlackRock(BR) Top 100 Equity Fund - Regular Plan (G)Balanced Fund: HDFC Prudence Fund(G)pls suggest anyone.

Is this right time for MF investment?
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8 Replies to “Is this right time for MF investment?”




  1. The short term outlook is bearish, so wait for some more time, and it would be wise to invest as the market picks up, which is not possible in the next few months, maybe end of 2009 or so.



  2. Yes, this is the right time to invest in MF as the market is bleeding and you can buy MF plans at cheap rate.

    But ensure, you stay for atleast 3 years for good returns.

    Most of the funds you have mentioned are 5 star rated, good pick. Don’t forget to check http://www.valueresearchonline.com and moneycontrol.com for rating and Crisil rating.

    Instead of HDFC Prudence Fund(G) go for DSPBR Balanced
    Replace SBI Magnum Contra with HSBC Equity/Reliance Growth Fund

    To avoid entry load, invest directly. Most of AMC’s have their registrars located closely to your residence. Checkout CAMSOnline.com or Karvy.

    Good luck and happy investing


  3. I agree with Kristi. But I don’t think you should replace Magnum Contra. Both Reliance Growth and Magnum Contra have similar midcap allocation.

    It is good time to invest in MFs. Invest using SIP only.






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