wrong time to invest in SIPs
I currently have around 8L lump sum available to invest and was looking into equity funds. however most the SIPs are at an all time high.
I don’t wish to reallocate my portfolio a lot, so I’m looking at it for the long term (~4-5 years minimum), but wished to make sure I’m investing at the right point.
is there anyone who’s stuck in a similar situation, what would you recommend? (do think that 2024 will be more growth driven for the economy than 2023)
looking to put it in with the following split: 50% - Large Cap 30%- Mid Cap 20% - Small Cap
should I wait some time or put it directly in?
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If you are scared, simply do a weekly SIP and deploy the money in 4 weeks.
If stocks go up, you would've got some units at a lower price.
If it goes down, you would have the opportunity to buy at a lower price.
It doesn't make sense financially but psychologically it does.
Avoids analysis paralysis and not investing the money.
Completely rational move without emotions backed by data is to do a lumpsum investment today and forget it but we are humans after all
Exactly what i had in mind as well
You can't predict market, only thing you should be comfortable is to hold. I suggest you add 15% to gold as a hedge. Market might cool off only after assembly elections. You can't completely pick bottom. You can keep deploying in parts when ever there is 1-2% fall.
Dont stress too much about catching bottoms and tops. Focus more on investing long term in quality businesses/MFs
While your funds are lying around, park it in short term instruments. T bills.