Best Time To Buy Mutual Funds

What is the Best Time To Buy Mutual Funds?

The best time to buy mutual funds is a very common question that people have in their minds and discuss with their peers about the timing to buy mutual funds.

Firstly we need to understand which mutual fund are you talking about? Equity? Debt? Hybrid? or Large Cap? Mid Cap? Liquid?

So confused? Well, there’s a lot to understand and every category has its own time. So, talking about the best time to buy, in general, is not the right question.

The best answer to this question is,

“Best Time to Buy Mutual Funds is when you have money that you don’t need for a specific period of time.”

All you need to understand is that You should invest when you have surplus money – Its that simple.

Now, the next question comes up in which mutual fund to invest? It depends on your time horizon & risk profile. If you have surplus money for less than 1 year then go for Liquid Funds. If you have surplus money for 5-7 Years then go for Large & Mid Cap or Diversified Equity Funds.

But wait, if you can’t see the negative value of your investments at any point in time even if your time horizon is 5-7 Years or more, then stay away from Equity Funds. Stick to Liquid Funds or Low Duration Funds.

That’s all you need to understand if you are looking for the best time to invest.

If you have any query tweet me @gurpreet_saluja