What if I invest in diversified mutual funds now as sensex has fallen....will it help me ?

The right way to invest in a mutual fund is by starting a systematic investment plan (SIP), wherein you invest in the market on a monthly basis. In this way your investment is well protected as it has the benefit of averaging. In the event the markets falls further, you will not be as badly hurt, had you invested in one go.

Starting a systematic investment plan during times such as this will definitely be beneficial in the long run.

However, if you hear the news, a lot of analysts predict the Sensex between 12-14K. So you can wish to wait till the market reaches that level to start your SIP.

Hope that answers your question.
Thanks
Ashish

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