I am a long-term investor and I have been investing in 5-star rated funds for the past 5-6 years. Now, when we invest directly into equities, we buy more shares of a company to average out our holdings when the stock’s price goes down. Can this method be used to invest in equity mutual funds, over and above the SIPs that are already running, to benefit from the current market situation?
We have always advised investors to refrain from timing the markets. You should stay on course with your systematic investment plans. However, while what you're saying does have some merit, it does expose you to the risks of catching a peak. What you should do, if you have additional money to invest, is increase the amount of your SIPs. This will be a better way of trying to benefit from the market situation prevailing today.