Should I start investing in mutual funds now or wait?

I am 32 years old. I have little knowledge about mutual funds. I would like to invest Rs 4,000-5,000 per month via SIP. I want to invest in four different schemes (4× Rs 1,000=Rs 4000). I want to invest Rs 1,000 in a safe mutual fund that would return more than fixed deposit, Rs 1,000 in moderately high risk with better return, Rs 1,000 in higher return and the last one in extremely high risk with maximum return. Please, suggest some good MFs to invest. I want to invest for five years.

Market is down, should I start investing or wait till it gets stable. Few mutual funds which my friends have suggested are:

(1) Reliance Large Cap Fund
(2) SBI Bluechip Fund
(3) Axis Focused 25 Fund
(4) Franklin Templeton...
(5) Mirae Asset...
(6) Motilal Oswal...

Please suggest the exact plan to choose.
--Pramod Kumar Goswami

Since you do not know much about mutual funds, we would like you to consult a mutual fund advisor before investing. Do not take tips from friends and colleagues. What works for them need not work for you. Ideally, the choice of mutual fund schemes must be based on one’s goals, investment horizon and risk profile.

You are approaching your investments like a game. A better way would be to identify your various financial goals, and choose schemes to achieve those goals. You cannot invest in high-risk equity mutual fund schemes like midcap schemes and smallcap schemes with an investment horizon of just five years. These schemes can be extremely risky, and you should invest in them only if you have a longer horizon of seven to 10 years and the capacity to withstand high volatility.


Also, you should not pace your investment decision based on the prevailing market conditions. If you are investing to achieve your long-term financial goals, you can go ahead and invest in equity mutual funds.