How to invest in Mutual Fund now when stock markets are so high ?

POSTED BY Nagesh Kamath ON May 16, 2014 10:01 am COMMENTS (2)

My target is to regularly invest a certain sum – say 1 Lakh per month in Equity Mutual Fund but for last one month have held back. Now that the Stock Markets has risen to very high levels, thanks to a large quantity of speculators, how does one go about investing in Mutual Funds

– Avoid Equity Funds (including SIP) completely?

– Invest in Debt Fund or Liquid Fund and systematically transfer to Equity (SWP – SIP)

– Invest in Balanced Fund (Hybrid Equity)

– Keep the SIP on for a longer period distributed over (INR 20K per fortnight) selective funds)

The rally in stocks is scary that it does not seem to have any basis and experts who was till 3 months ago projecting a fall is now suggesting a further rise. This is confusing.

Please advise your views

– Nagesh Kamath

2 replies on this article “How to invest in Mutual Fund now when stock markets are so high ?”

  1. TheZionView says:


    Only thing i know for sure is that I DONT KNOW

    So if you have a surplus of 1L a month that can be invested and your most of the goal are atleast 7+ years away allocate about 80-90% in equity fund and rest in simple debt fund.

    Just sit tight and dont follow the market at all. Check the portfolio once in 6 months if your fund is performing poorly give it another 6 months and if its still not good then move to another fund.

    Where the market currently is hardly matter if you are investing in SIP mode. If a person started his SIP in Jan 2007 and stayed invested until today in SIP mode do you think he would have got poorer returns? just check the calculation out you will be amazed

    so dont bother the noise and keep your faith

  2. Hemanth Chandra says:

    The main use of mutual funds is to have a balanced return in the trend of ups and downs of the market.

    But, watching the current trend of market, I would say to wait for 5-6 months and start investing in New SIPs in equity funds.

    I would suggest SWP from liquid funds to equity funds after 5-6 months from here.

    This is my own opinion.


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