VR Logo

Should I wait for market correction to invest in equity funds?

Dhirendra Kumar explains if it's wise to wait for a market correction and the investment plan to follow

My father's fixed deposit has matured and now I am looking forward to investing in an equity fund. But currently waiting for an opportune time in terms of market correction. What's your view on it?
- Aliasgar Khambati

My suggestion won't help you because I really can't help you guess the market. My only suggestion will be that if you keep waiting for the market to correct, to make your investment, you might end up waiting forever. Because over a prolonged period of time, markets don't have a logic. Many a time, the broad direction is very difficult to guess.

So my suggestion will be to evolve a plan, make sure that you start investing your money over the next few years on a monthly basis. And if at all sometime in between there is a huge correction, then maybe accelerate that plan and make that one-time investment sometime in between. The advantage of this plan will be that you will not be completely out of the market if the market steadily goes up and never corrects.

Post Your Query