Does it make sense to invest in mutual funds when the markets are down?

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I am looking to invest Rs 20,000 per month via SIP in mutual funds for an investment period of more than 20 years. The idea is to maximize wealth to use for my daughter.

Currently, the markets are in a downward trend. Is it the right time to make an investment?

If yes, please suggest a mutual fund portfolio. I am looking for maximum returns. So, investing in equity is not a concern, but I need solid promising investments.
--Manik Jain

Nobody can predict the market. Buying when the market is at the bottom and selling when it is high is called timing the market. Countless studies have proven that it is not easy strategy to follow. Beating the market on a regular basis for a very long term is almost impossible. That is how many investment experts believe that investing a small amount regularly over a long period is the best way to maximise wealth.

When you are investing for a long period, such phases would like a small blip when you look back. Also, when you are investing regularly during a bad phase, you will be able to buy units cheaper. It will help you to maximise wealth. That is why it is extremely important that you should continue with your SIP investments irrespective of the trends prevailing in the stock market.

Since you have a long investment horizon and ready to take risk, you may invest in equity mutual funds. Here are our recommended equity mutual fund SIP portfolios. You may choose a portfolio that is in line with your risk profile and SIP amount. For more, read: Best mutual funds to invest in 2018.
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