Time wise, the correction can last for another year in which a lot of sideways (timewise) correction is possible.
Since one can never catch the bottom and the long term is bullish, it makes sense to start investing systematically in mutual funds.
All AMCs offer SIP (systematic investment plan) and these are best when markets are correcting. Since the correction has been substantial, the timing to start this is now.
An advantage of SIP is it is cost based which means the amount you invest is fixed every month. You can start with even Rs.1000/- pm and as markets correct, you get more units but if markets rally, you get fewer units.Rs.1000/- pm is not much and will be a forced saving anyway as it is invest and forget.
The benefits of compounding will also kick in and these are substantial.You will need to have a time frame of 5-7 years at the very least and you can start with 2-3 funds.
---KAMLESH LANGOTE
http://www.vfmdirect.com/
Bigger bull run yet to come: Rakesh Jhunjhunwala.
Rakesh Jhunjhunwala is India’s most successful investors; one of the stock market’s most successful stories. The sometimes maverick, often mercurial but always a respected voice. He is a wealth creator and a man who anyone who enters the stock market wants to be.
Here is a verbatim transcript of Investor and Trader, Rakesh Jhunjhunwala' s exclusive interview with Mitali Mukherjee on CNBC TV18's Wealth Creators show. Also watch the accompanying video.
Published on Sat, Sep 20, 2008 at 20:16 , Updated at Mon, Sep 22, 2008 at 10:15 http://www.moneycon trol.com/ mccode/news/ article/news_ article.php? autono=356959
Source : CNBC-TV18
