Is it the right time to invest in mid cap and small cap mutual funds?

Based on the current market conditions many are suggesting to invest in small and mid cap schemes. I would like to know what market experts say about this. Is this the right time to resume our small and mid cap investments?
--Abhishek Bose

Pankaaj Maalde, a certified financial planner, responds:

It is difficult to time the market and you should avoid it. Equity investment in long run has given much better returns compared to all other asset classes. Your time horizon for investment should be minimum five years. It is true that mid cap and small cap funds have corrected more than large cap funds but you should know that they are more riskier than the large cap funds. If you understand the risk and are also willing to take higher risk for better returns in future you can start the investment. But avoid lump sum investment and prefer a monthly SIP route for minimizing the risk.