I want to do SIP for 10K in Parag Parikh Flexi Fund for long term. Now the market is going so high. Is it a good time to start or should I wait for some time?

To take a proper understanding of the topic let’s take a quick look as to what does SIP stands for,

SYSTEMATIC INVESTMENT PLAN (SIP):

SIP investment plan is about investing a small amount over time rather than investing one-time huge amount resulting in a higher return.

Timing the market is the most important part of investing, thus there are few factors that should be kept in mind such as:

Selecting goals: make sure you have an achievable purpose for investing. Identify them and plan accordingly.

Long-term investment: investing in equity funds like parag parikh mutual fund requires a long term investment period. This will benefit you in the long run as short term or temporary changes in the market will overcome by that time.

Rupee Cost Averaging: SIP uses this kind of method, which involves buying more units at low prices rather than fewer units at high prices to possibly reduce the average price per unit with time.

Diversification: it helps you to divide your assets into various different sectors. It’s like planting seed in multiple pots. Resulting in, having more than one fruit from it.

Affordability: SIPs make investing possible for people with limited resources by allowing small investments at the start.

Take guidance: it’s better to take help of a professional because mutual fund SIP’s are connected to market changes. Proper monitoring is important to make sure your assets are safe and it also reduces your chances of failure.

In conclusion, investing is totally your decision but what you can do to determine the right time of investing is to keep the above mentioned points in mind.