Is it Best Time to Buy the Contra Fund?

Is Now the Best Time to Buy the SBI Magnum Contra Fund?

I really don’t know that why people ask such types of questions? What is the logic behind asking such types of questions? I have separately make the article having such kind of title because many readers have asked me the same question several times.

Now, let me tell you the 2 proverbs.

- It’s not about Timing the market but It’s time in the Market…!!!

- The Best Time of Investment was 20 Years Before & The Second Best Time is Now…!!!

Do you understand the meaning behind both of the above proverbs? Well, they show the importance of time and the power of compound interest in Investing. The Investment is not only a game of Money. But it’s a game of Money & Time both.

So you MUST have to invest your time also along with your money. Now if you try to time the market than you will loss that valuable time also. Instead of that why not start SIP in SBI Magnum Contra Fund right now?

Another thing is that, you should not try to time the mutual funds. The common mistake many people do is, They try to time the mutual funds. They treat Mutual Fund units as a stocks. But well, Mutual Funds are not the same as that of stocks. But each mutual fund has an underlying portfolio of 30-100 stocks.

And the fund manager of any mutual fund will time the market for you. He won’t invest your money in the stock market until he finds the attractive valuations. Last years (2008) most of the mutual funds were sitting on the huge cash pile. Most of the fund had as high as 40% in Cash and Liquid Assets. Because the market was highly volatile at that time.

So In my opinion, you should not try to time the market as well as Mutual funds….!!!