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Lump-Sum Liability

Investors must stay away from risky investment choices

Some of my fixed deposits have matured and I want to invest this amount in four equity schemes. While the fund ratings and past performances of funds are readily available on your website, there is no clear indication if this is a good time to make a lump-sum investment in them. Please guide.
-    Anand C Shastry

We, at Value Research, believe that markets cannot be timed. And we do not encourage people to attempt to do so. When carefully chosen, based on their past track records, funds are more likely to deliver good returns when investments are made in a disciplined fashion. You should avoid investing lump-sums in equity mutual funds. Instead, invest in debt funds initially and then opt for systematic transfer plan (STP) into the equity funds. As the investments will be made at all market levels, this will help you insulate your equity investments from sudden market movements.

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