A common question from a lot of investors in mutual funds is whether this is the right time to invest. There is a lot of debate and thinking behind selection of when to invest but this could be an effort gone waste because the real effort needs to be directed towards ensuring that there is some investment that is actually made. There is no way that a person can know whether the current time period is a good one or not till one looks at it in hindsight but it is important for the investor to ensure that they have the basics right. This will help them to deal with the situation in a better manner. Here is a look at some points that every investor should keep in mind while considering the time of investment.
Start now
It is pointless in trying to determine when is the right time to invest because one has to ensure that there is some amount that has actually been invested. Only when this is done would there be a chance that the investment has gained something and the investor will benefit. Just asking the question about when to invest will not yield any benefit and the best thing to do if one has not invested is to start right now. This will at least get the entire process off ground and ensure that one part of the investment action has been completed. Ideally one should have invested in mutual funds from the time that there was some earning made by the individual but in case that has not been done then there is no reason to worry about what should have been done. This cannot be changed but what can make an impact is the fact that if there is some investment made right now then it can yield returns in the future.
Make it a habit
Most people fail to realise the fact that investment is not a one-time activity but one needs to ensure that this is undertaken on a consistent basis. This is the reason why every person should make investing a habit. If this is done then there will be regular investments that will continue to be made over a period of time. It will ensure that there is money being directed towards different asset classes as this can be easily completed using mutual funds. When this is done then it will answer the question of what is the best time to invest because the actions will speak louder than anything else. The only thing that the investor needs to figure out is how they should make this a habit and regular feature and once again mutual funds offer the facility of a systematic investment plan (SIP) whereby one can invest a fixed sum each month on a specified date.
Make up lost ground
If there has been a gap in the investment process or if this has not been made regularly then there should also be an effort to ensure that there is ground made up for the lost time. The investor has a host of options that they can use in mutual funds for this particular purpose. They can make use of lumpsum investment or SIP or if they can invest a large sum in a debt fund and then transfer this to an equity fund using the Systematic Transfer Plan (STP) route. They can schedule the investment on different days of the month and this can be completed easily by giving instructions in this regard. All this makes the process of investing simple and all that the investor needs to do is to make the choice and then complete the process. This will be enough for them to ensure that they have used the right path to achieve their financial goals.