What is the best time to invest lump sum in equity mutual funds

It is very difficult to say what is the best time to invest lump sum in equity mutual funds - based on NAV of the scheme, Sensex levels or PE Ratio as mentioned by you?

We think more than the NAV or Sensex levels, it is important to invest in mutual funds based on your risk taking appetite, investment horizon and financial goals. A popular saying is 'Time spent in the market is more important than timing the market'.

If you look at NAV of the mutual fund scheme, Sensex levels or market PE, then you are probably trying to time the market as far as your equity mutual fund investments are concerned. Needless to mention, timing the market is almost impossible.

We think, trying to time the market is a very wrong approach for long term investing. As we mentioned earlier, if you are clear about your risk profile and have an investment horizon of 5 years as you want to invest in equities, then any time is a right time to invest your lump sum amount in equity mutual funds.

Thanks for writing to us