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Volatile market and investment in mutual fund

    Since many days the question on reasons as to why we should invest in mutual fund is raised many time, as market is facing ups and down day by day. And also in single days the index's are getting down by 1 percentage. 

    See now lets understand one thing that in the stock market the volatility of such type will be there and by this volatility only investors are making profit. So is it the time to invest in market!!!! I know that prediction of market is very difficult. But there are some tools or method or statics by using which mutual fund houses are planning their trades. Can we use same tips and trick to trade in market to get the maximum profit???

    Lets understand that the same method can be used by us, but the risk of losing money will also be high. The people who are trading in market, watching stock market etc. Will find it easy but for the rest the difficult task starts here. As we are not regulatory watching the market the prediction is difficult. On every single news or upcoming the prices of stocks are changing. And daily number of news are coming so how to identify which news or upcoming will affect which stock. This comes after the long practise and experience.

    Every one is not having the time to look for all the news and upcoming and pick the stock accordingly. Hence this task is successful taken up by mutual fund houses, they collect the money from small investors and invest in market. Now same question stays whether we should invest in volatile market???  The answer is YES. Now lets understand why in my previous post What is mutual fund i have explained the benefit of average purchase cost. When market is volatile you get the opportunity to purchase the bes stock at lower price by choosing the right mutual fund. Normally mutual fund houses tracks for such type of opportunity and trade wisely. Doing same task at individual level is bit difficult.

    Its seems out of my own experience the market at long run gives the best benefit. And continuing the SIP will help us to get the benefit of volatile market.

Happy investing.

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