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Eliminate Timing Risks

By investing a fixed amount at predetermined intervals, the trouble of figuring out the best investment time is eliminated…

I want to invest Rs 1.25 lakh in mutual fund. Can you please suggest funds considering the current state of the markets? I am looking for long-term investments?- Sanjay Bhalerao

In our view it is always beneficial to invest systematically and regularly over lump sum, especially when considering investments for the long-term. By investing a fixed amount at predetermined intervals, the trouble of figuring the best time to invest is eliminated, which offers an efficient way to ride market volatility. You can invest the lump sum in a liquid fund and initiate a systematic investment into a large-cap fund or a large- and mid-cap fund to transfer the entire corpus over a period of time that is convenient to you. Make sure to follow the progress made by your investments at least once a year to continue investments or make any changes to the selected funds.



This article was originally published on August 23, 2011.

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