Is it a good time to start mutual fund SIPs

Yes, anytime is a good time to start your SIP investments irrespective of the market levels. SIPs are habit forming and inculcates a discipline towards investing regularly. As you accumulate units at different market levels and cycles, it reduces the risk in your investments. So why these market levels, you can start long term SIPs in equity mutual funds at any market level, anytime and every time.

If you are not sure about the current market situation and also not confident of investing in lump sum, then of course you can invest via STPs of 12-15 months period. We will not suggest a long term STP as the markets look quite bullish in the medium to long term.

Yes, you can invest now in balanced and equity funds including ELSS schemes provided you have a minimum investment horizon of 5 years. Please note few top performing funds from respective categories - 1) Balanced Funds - ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund and HDFC Balanced Fund 2 ) Multi-Cap Funds - Birla Sun Life Equity Fund, SBI Magnum Multi-Cap Fund and DSP BlackRock Opportunities Fund 3) ELSS Funds - DSP BlackRock Tax Saver Fund and Birla Sun Life Tax Relief 96 Fund.

Hope you find the above useful and thanks for writing to Advisorkhoj.