Is this the right time to invest in mutual funds

It is very difficult to answer this question as it relates to forecasting or timing the market levels. Please note that even the best financial minds in the world could not predict this.

To answer your query, simply speaking, if your investment horizon is 5 years or more than any time is the right time as far as investing in equity mutual funds is concerned. Therefore, go ahead and invest in it.

Having said the above, the point that you should keep in mind while investing is to choose funds according to your risk taking capacity. If your risk taking capacity is moderately high to high or very high, you may invest in diversified equity mutual funds or mid & small cap funds. But, if your risk appetite is low or moderate, then investing in balanced funds or debt funds will make sense.

Therefore, apart from the investment horizon, selection of funds based on ones risk taking ability is also very important.

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