Now that the markets have corrected considerably, I would like to invest a lump sum of around ₹3-5 lakh at one shot in a mutual fund. My investment horizon is five years and I want to use this opportunity to buy low. What are my options?
- Dennis A
It is true that the market has corrected quite a bit in the last year. For example, the Sensex is down by around 15 per cent in the last year. However, nobody knows whether the market has hit the rock bottom. There is a possibility that it may go down further or it may go up from here. That is something nobody can predict with certainty. That is the reason why we believe that it is always better to make staggered investments in the equity market.
You can invest in one or two top-rated diversified equity schemes. Here is a list of best diversified schemes.
This article was originally published on January 22, 2016.