Best Time to Start Sip: When to Invest in Mutual Funds

Mutual fund managers and advisors have been asking conservative and new equity investors to invest in balanced advantage funds to tide over the volatile phase in the market. They believe these schemes are ideal to invest in stocks without worrying too much about the market levels and valuations.

One of the best ways to invest in equities is through mutual funds.

Mid cap mutual funds refer to schemes which invest a minimum of 65 percent of their assets in mid-cap stocks i.e., securities of companies that are ranked between 101 to 250 on stock markets as per market capitalisation.

At least three asset management companies (AMCs) have together opened 16 international equity mutual fund programmes for lump-sum investments up to the amounts legally permissible. The Finance Bill amendments, applicable from the next financial year beginning April 1, will remove indexation benefits for debt-oriented savings plans.

India Business News: India’s markets regulator has asked mutual funds to take steps to protect investors in small- and mid-cap plans amid concern that some parts of the nation’s $4.5 trillion stock market have become overly exuberant.

Move may quicken consolidation in India’s ₹41-tn MF industry

SEBI has introduced the “Corporate Debt Market Development Fund”, a backstop facility for specified debt funds during market dislocations and to prevent recurrences of events such as the one with Franklin Templeton MF.

Simplifying your investments involves aligning them with your financial goals. The process of streamlining your investment portfolio can be time-consuming, as it requires several steps to initially declutter and subsequently consolidate your mutual fund holdings.

Monika Halan, an analyst, debunks myths about investing in mutual funds. She explains that mutual funds are not a single product but a pipeline that connects investors' money to various investment options like stocks, bonds, gold, and real estate. She emphasizes the importance of considering factors like risk, liquidity, and investment horizon, rather than just focusing on returns. Halan also advises against solely investing in midcaps and smallcaps, as well as expecting guaranteed high returns in the short term

Indian equity market at record level but valuations still at long term mean; attractive for FIIs due to pro-business government policies and growth potential. SIPs and mutual fund schemes help navigate uncertainty, says Sunil Subramaniam of Sundaram Mutual.