Factors to consider while investing in mutual funds when stock markets are at all time high

Share markets are climbing newer heights every day. It’s a win-win for stock market investors. But what about mutual fund investors? Money9 Helpline hosted SEBI registered investment advisor Amit Kukreja to resolve mutual fund investments queries and how to leverage the all-time highs of stock markets.

Edited excerpts:

Hemendra Kaushik: Those who are saying it’s a bull run in the market, actually it’s just 30% above pre-covid levels. SIP is the key

Kukreja: SIP is definitely the key. You get the cost advantage with SIP when the market is on the corrective side. You should invest in SIP when your goal is long-term. If you are investing in SIP for a 2-3 year time horizon, then you should do it in the least risky asset.

Patralekha Mukherjee, Kolkata: Most of my mutual fund investments are equity-linked funds and a few in balanced funds. I am investing Rs 18,000 in these funds via SIP. Should I change my investment pattern and increase debt funds in my portfolio?

Kukreja: It should be determined by your goal. If your goal is within 4 years then the entire money should be in debt or 80% of the money that you have earmarked for the goal should be fixed-income remaining 20% can move from gradually equity to fixed income. If your goals are for more than 6-7 years then it can be allocated into equities or the current ratio you have.