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Nov 13, 2018 11 min read

What Is the Best Time to Invest in Mutual Funds?

Read this blog to find out all about the best time to invest in mutual funds. Also, find recommendation of the best mutual funds to invest in now!

They say, yesterday was the best day to invest. Even if you missed it, today is yet another good day to initiate. However, don’t delay much if you don’t want to forgo some extra returns.

Is There Any Best Time to Invest in Mutual Funds?

Well, going with the views of industry experts, one can invest in mutual funds anytime as per one’s wishes; still, there are a few scenarios that offer an ideal chance for rapid growth and high returns when the investment is made at their presence. In short, whenever you are buying a mutual fund scheme, ensure that:

  1. The market is at its rock bottom.
  2. The bonds have yielded the highest returns, and/or
  3. A few of the growth sectors such as real estate and infrastructure are at their lowest points.

Whenever the market meets any or all of the above-listed scenarios, it forms an ideal time to invest in mutual funds. This might sound intriguing; however, it is practically impossible to mark such a day. Thus, it wouldn’t be wrong to say that this time never comes.

To conclude, it will be wiser to understand that there is no use of timing the market; thus this brings us back to our old conclusion, i.e., the best time to invest in mutual funds is now!

Which Factors Decide the Right Time of Investing in Mutual Funds?

Till now, you must have actually made peace with the fact that waiting for the ideal time will serve you no good. Thus, what can be done? Well, it is always better to start right from today and ensure that you follow all the essential tips shared by industry experts with an aim to get high returns. Let’s find out more about the other vital steps to consider once you decide to make an investment in mutual funds. The second step definitely is finding out the funds to invest in. Here we have discussed several factors that can help you make an ideal choice of the scheme:

  1. Risk Appetite: There are all kinds of mutual fund schemes available in the market. From the ones which offer exceptional returns to aggressive investors to even mutual funds which are loss free for investors looking to accruing safe returns, the industry has it all. If you have already invested in traditional investment avenues like PPF, FD, etc., then it’s time you invest in high returns offering equity mutual funds to maximize your gains.
  2. Market Positioning: Market positioning refers to the time when the market correction takes place. For the low-risk investors, the correction of approximate 10-15 percent is actually an excellent time to initiate an investment.
  3. Return on Investment: For high yields, investors are often advised to invest for a long-term in equity mutual funds. They may even invest in via SIP at any given point in time and forget all worries regarding the market to fall.
  4. Tax Deduction Under Section 80C: In the list of the different set of products, the mutual fund industry has schemes suiting specific goals like tax efficiency, etc. Equity Linked Savings Schemes are for the investors who are looking for tax saving to claim tax deduction under section 80C of the IT Act of India.
  5. Investment Horizon/ Tenure: Investment horizon is the period for which you wish to stay invested. Investments for a long-term are suggested accruing high returns, but if you are some who cannot be patient, then you must avoid this option and instead invest in debt or liquid funds for stable and consistent returns in a short-term. If the investment tenure is of 5 years or more, then any time is the right time to invest in equity mutual funds for a return better than most of the other available options.

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Best Mode of Investment in Mutual Funds

This is a question of no doubt at all. Amongst the two modes of investment in mutual funds, SIP is the best one. In SIP, a fixed amount is invested in a mutual fund scheme of your choice every month. The set up is such that the money is automatically debited from the investor’s bank account. To know what amount of SIP you need to invest to achieve a particular goal, you can make use of our online SIP calculator. Listed below are some of the other attractive reasons which support our answer as to why SIP is the best mode to invest.

  1. You can stop a SIP any time as per your wish.
  2. Additional investments can be made anytime as per your choice.
  3. There is no need to time the market with SIP investment.
  4. You develop a habit of disciplined savings.
  5. Investment can be made with a very little amount.
  6. Get the benefit of rupee cost averaging and compounding.

Top Mutual Funds to Invest in Now through SIP

Axis Bluechip Fund(G)

Axis Bluechip Fund erstwhile known as Axis Equity Fund, it is a large-cap scheme with over Rs 2900 crore assets under management as on Oct 31, 2018. It aims to generate long-term capital for the investors by investing in a diversified portfolio predominantly consisting of equity & its related instruments of large-cap companies. Currently, the investment can be initiated in the scheme with an initial NAV of Rs. 25.71 as on November 09, 2018.

Basic Information
ParametersAxis Bluechip Fund(G)
Category Equity : Large Cap
Benchmark NIFTY 50 Total Return
Launch Date 1/5/2010
Asset Size Rs. 2927 crore (As on Oct 31, 2018)
Fund Manager Shreyash Devalkar
Expense Ratio 2.52% (As on September 30th, 2018)
Minimum Lumpsum Rs. 5000
Minimum SIP Rs. 1000
Exit Load For units in excess of 10% of the investment,1% will be charged for redemption within 365 days

L&T Midcap Fund(G)

With an asset base of Rs 3, 197 crores as on October 31, 2018, L&T Mid Cap Fund holds a special position in the list of best mid-cap funds to invest in now with a long-term view in mind. Considering the past record of this scheme of L&T Mutual Fund, it has outperformed both its benchmark as well as the category average at all time periods. Both the fund managers, Mr. S. N Lahiri, and Mr. Vihang Naik follow the growth style of investing and the bottom-up stock picking strategy. It primarily invests in companies whose market capitalization falls between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.

Basic Information
ParametersL&T Mid Cap Fund (G)
Category Equity : Mid Cap
Benchmark NIFTY Midcap 100 TRI
Launch Date 8/9/2004
Asset Size Rs. 3197 crore (As on Oct 31, 2018)
Fund Managers Soumendra Nath Lahiri and Vihang Naik
Expense Ratio 2.35% (As on September 30th, 2018)
Minimum Lumpsum Rs. 5000
Minimum SIP Rs. 500
Exit Load 1% for redemption within 365 days

Mirae Asset India Equity Fund(G)

Mirae Asset India Equity Fund was erstwhile known as Mirae Asset India Opportunities Regular Fund. It aims to maximize long-term returns for its investors by finding investment opportunities resulting from Indian economic growth and its structural shifts. The investment mainly involves equity and its related instruments. Currently, it holds an asset base amounting to Rs 8755 crores as on September 30, 2018.

Basic Information
ParametersMirae Asset India Equity Fund (G)
Category Equity : Multi Cap
Benchmark S&P BSE 200 TRI
Launch Date April 04, 2008
Asset Size Rs. 9033 crore(As on Oct 31, 2018)
Fund Managers Harshad Borawake and Neelesh Surana
Expense Ratio 2.01%(As on September 30th, 2018)
Minimum Lumpsum Rs 5,000
Minimum SIP Rs. 1000
Exit Load 1% for redemption within 365 days

SBI Small Cap Fund(G)

Aggressive investors looking for lucrative returns in the long-term should definitely go with this recommendation. SBI Small Cap Fund is open-ended equity scheme which predominately invests in a well-diversified small-cap stocks to seek long-term capital appreciation. Due to the capacity constraint of Rs. 750 crore subscriptions in the scheme, it was suspended for fresh investments in October 2015. However, soon on May 16, 2018, the scheme reopened for fresh investments. The past returns of the scheme are evidence that it has been successful in exceeding its investors’ expectations by rewarding them with whopping returns.

Basic Information
ParametersSBI Small Cap Fund(G)
Category Equity : Small Cap
Benchmark S&P BSE Small Cap TRI
Launch Date 9/9/2009
Asset Size Rs. 1141 crore (As on Oct 31, 2018)
Fund Manager R. Srinivasan
Expense Ratio 2.67%(As on September 30, 2018)
Minimum Lumpsum Rs. 5000
Minimum SIP Rs. 500
Exit Load 1% for redemption within 365 days

Canara Robeco Emerging Equities Fund(G)

Belonging one from the newly made category of mutual funds, i.e., large & mid-cap category, Canara Robeco Emerging Equities Fund has assets under management worth Rs 3718 crore as on October 31, 2018. It has emerged out to be a consistent performer over years which have helped it earn 4-5 star rating for the past seven years straight. Being a sector-agnostic fund, it seeks opportunities across sectors which are bias towards mid-caps. It aims at identifying companies which have the potential to become the leaders of tomorrow in their respective segments.

Basic Information
ParametersCanara Robeco Emerging Equities Fund(G)
Category Equity : Large & Mid Cap
Benchmark S&P BSE 200 TRI
Launch Date 3/11/2005
Asset Size Rs. 3718 crore (As on Oct 31, 2018)
Fund Managers Krishna Sanghvi and Miyush Gandhi
Expense Ratio 2.0% (As on September 30, 2018)
Minimum Lumpsum Rs. 5000
Minimum SIP Rs. 1000
Exit Load 1% for redemption within 365 days

Invest in the Best Mutual Funds
  • 100% Paperless
  • No Transaction Charges
  • Easy to Invest
  • Safe & Secure

The Final Take

Considering the time of high fluctuations and corrections in the market, several investors were cautious while investing, especially in mutual funds which are market linked investment options. This blog will help all of them to make the right decision. To seek further guidance on the best mutual funds to invest in now, consult us directly via call (+91-9660032889) or email ( support@mysiponline.com).

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