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Timing the market with Mutual Funds
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Timing the market is not a good idea.
Particularly with Mutual Funds because MFs are long term investing products.
Time spent in the investment is more important than timing the market.
It is true that it appears that at the expiry of each month of the derivatives market, stocks tend to correct sharply.
This need not always be true logically and the converse is also equally possible.
Further, when it comes to mutual funds, there is a time lag between our Systematic Investment Plan (SIP), the AMC getting its money in its hands, and the time at which the investment is actually deployed in the underlying scripts.
So, we need not have to time our SIP on specific days per se.
Simply said, how long am I committed run my SIP is more important than on which day of the month is my SIP going to happen.
Choose the date that is convenient to you instead.
Related Lessons
- Asset Management Company
- New Fund Offer (NFO)
- Mutual Fund Expenses
- Expense Ratio and Total Expense Ratio (TEP)
- Portfolio Turnover
- Exit Load
- One Time Manadate in Mutual Funds
- SIP vs Lumpsum Investments
- Lifestage Planning with Mutual Funds
- Building a Child Education scheme using Mutual Funds
- Building Marriage Corpus using Mutual Funds
- Mutual Fund plan for a just retired person
- Retirement Planning with Mutual Funds
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