What Is The Ideal Market Condition To Start Investing In Mutual Funds?

That you should begin investing when it is a bull or a bear market is a myth. ‘When’ you begin investing in equity based mutual funds is a less important question than ‘how long’ you invest. 

Many people have misconceptions about when they can begin investing in mutual funds. Some believe that you need to be a young investor (late 20s or early 30s) to begin investments. Others believe that the market situation matters and that we should invest only when the market is doing well. However, neither of these beliefs are true.

Like we discussed in the answer to the question “who can invest in mutual funds?”, your age is of no consequence to your investment decisions. Of course, if you are investing with the intention of having a nest egg by the time you retire, whether you are 20 or 50 does play in role in determining how long you have to accumulate that nest egg. But then, there are many options available that you can choose from, depending on how long you have before you need to withdraw the money and the returns that have accrued on it. That?s why we are there! Wealth Central helps you choose funds to meet your investment objective.

If you are not a short term investor, playing the market on a daily basis, the market situation is also of no consequence. If your money stays invested for say a 5 or a 7 year period, you will reap the rewards no matter how the market functions. One of the reasons for that is the fact that equity based funds are constantly monitored and adapted by a professional team of analysts and the fund manager. They evaluate the market constantly and take investment decisions based on the same. If you are a short-term investor, then again there are funds that you can invest in accordingly. The great thing about mutual funds is that there is an almost-customised investment plan possible for everyone and every situation!