I want to Invest a lumpsum of ₹10 lakh in Birla Sun Life MNC Fund for 15-20 years my daughter's education and marriage. Please tell me whether the amount should be deposited before budget or after the budget? I have the money with me now.
- Pratap Rudra Kumar
First, it is always better to stagger your investments over a few months to a year to avoid committing the entire money at one go at a higher level in the market. You can park the money in a liquid fund and start a Systematic Transfer Plan (STP) in an equity mutual fund scheme or keep the money in a bank deposit and start a Systematic Investment Plan (SIP) in an equity scheme.
Two, we do not recommend investing in a sector fund like Birla Sun Life MNC Fund. Some sectors are always more favoured than others at any point of time and the favourite sector keeps changing regularly. That is why sector funds are suitable only for investors with knowledge about the working of a particular sector. Regular investors would find it very difficult to time the entry into and exit out of these schemes. You can consider investing in one or two top-rated diversified equity mutual fund schemes.
Here is our list of top-rated diversified equity mutual fund schemes.
It is not possible to time the market. Do not focus on events like budget, as it may not be a big factor when you are investing in the stock market for a long period of 10 years.