As the stock markets are highly volatile, many top funds are giving negative returns this year. Is it the right time to start investing in mutual funds through SIP? If yes, which is the better fund to invest from the long term perspective with reasonably good returns? My budget is to invest Rs 20,000 every month.
— Appaji Rao
Markets are cyclical. There are periods when it will do well and periods when it will falter and periods of extreme volatility. There is no right time, just the right way. Investing systematically in equity over all market cycles is the best way to proceed. And diversify within fund houses and types of funds.
You seem to be a first time investor. In that case, we suggest you consider a balanced fund. Since you have a fairly
large amount that you wish to deploy, we also recommend a gold fund.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This article was originally published on March 01, 2012.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
