The problem with the crowd is that they put money when market is high and bulls are riding the race and all of a sudden when bear phase start they come into the panic and withdraw the money and instead of making profit they lose money .
This thing usuall happens with retail investor ,they are always cheated.
So the safer way would be investing through Mutual Funds(thru SIP route) only in equities ,where professional managers are handling your portfolio.
and chances are less that you would lose money . Investment in equities is always calculated risk,a person should always ready to bear the loss also if he wants to make quick bucks.
Lets take an example of Indian Market ,Sensex is on new high and it has crossed 11,000 marks ,now it has become very risky to put
your money at this level and the correction is possible any time or it might happen that correction don't take place at all.
P/E ratio of some blue chip compnies is touching 50-60 .that is too high to invest in them at this level,So I would suggest take
professional help If you are not very confident about yourself.
So let the mutual fund manager do this job for you ,If you are not very knowledgeable in equities ,apart from this you can invest
in diffrent companies using mutual fund and your portfolio would be pretty diversified which is not possible when you invest individually.
Some good truested AMC are Franklin Templeton,Reliance,Fidelity,SBI (though its star manager Sandip Sabarwal has just left),Sundaram,DSPML. ( Do some research work ,by going to www.valueresearchonline.com)
Try to invest in those funds which are established and have good track record of return in both bullish and bearish time instead of investing in NFO (New Fund Offer ) and temptation of Rs. 10 nav. This is just a trick because nav of mutal fund is diffrent from nav of stocks.