Mutual fund investments require the right time horizon. A good time horizon not only increases the likelihood of achieving anticipated investment returns, but also reduces investment risk.
What exactly is this "risk" that we're discussing now? In layman's words, it is the erratic nature of investment performance as well as the potential for financial loss. The average returns will be pretty respectable if you stay invested over the long term, even if there may be some years with poor or negative returns and some years with strong returns. In order to obtain a more consistent long-term return, the investor can "average out every year's highly variable results."
The suggested time horizon varies depending on the asset class and Mutual Fund category. Before making an investment decision, please speak with a financial advisor and review the relevant scheme documents.