Correlation between large cap and small cap

[lotmanythings]

I'm having a lot of trouble deciding when to enter the market and when to exit the market through mutual funds.

I see that the large caps are very high now, however I desperately want to invest my money.

So to what extent are small cap mutual fund nav fluctuations independent of large cap
stock fluctuations. Is it the wrong time to invest in small cap funds like DSP Microcap.

 

[yodlee99]

In my opinion, when we hear about sensex/NIFTY going through the roof, we feel, man, I should have invested earlier. If you want to enter, invest via SIP only in large caps, as of now. When the markets consolidate, you will see your investments going down initially before they pick back up. Are you ready to see that? If that won't bother you at all, you can enter now. Or else, hold your horses. Come back after all the hoopla dies down.

 

[drsambu123]

I'm having a lot of trouble deciding when to enter the market and when to exit the market through mutual funds.

I see that the large caps are very high now, however I desperately want to invest my money.

So to what extent are small cap mutual fund nav fluctuations independent of large cap
stock fluctuations. Is it the wrong time to invest in small cap funds like DSP Microcap.

Hi avoid timing the market
Avoid timing the large or small cap momentum
Allocate more to large cap and less to mid and smal cap( according to your risk profile) .But in general keep mid and small cap less than 30-40% of your portfolio. Invest through SIP(again and again stressed by many....)
Never be desperate to put the money in (also never be desperate to take the money out). In general this tendency should be avoided.
Please read various threads in this mutual fund forum to get ideas about MF investing