Amongst all the edicts mutual fund investors should heed, one stands out above all others: It’s time in the market that builds returns in mutual funds, not market timing. Market timing in Mutual fund is intuitively appealing. When declining markets bring on the blues, an obvious remedy is to take your money and go home. The problem is that timing your re-entry is famously difficult, and there is considerable evidence that investors chronically mistime markets to their profound detriment.
Mutual Fund Investment Strategies- TIMING THE MARKET OR TIME IN THE MARKET:
- Your attitude towards certain investment strategies is, in part, influenced by your goals. Are you looking forward to making a profit from your investment in a short period of time? Or are you aiming to see results from a long-term perspective?
- Timing the Market is for investors wishing to grow their equity. Timing the Market is suitable for property investors looking forward to short-term but rapid capital growth.
- Time in the Market strategy is more suitable for property investors who want to leverage their investment’s equity against a more consistent and long-term income stream. This means that investors will continue to hold on to their investment for as long as it provides positive yields.
- If cash flow is more important than growth. So a buy and hold, debt-free and high cash-flow investment portfolio is preferable.
- The Time in the Market strategy involves one crucial factor to ensure steady cash flow.