While it is true that investing a lumpsum at a market high (high P/E) does negatively impact returns, it need not necessarily be as dire a scenario as presented above. Investing in a good mutual fund, as against just considering the index returns as illustrated above, improves the returns. For the same period (31-Dec-2017 to 29-Dec-2017), following are some of the mutual funds returns.
12.05 – Quantum Long Term Equity Fund
11.00 – ICICI Prudential Dynamic Plan
10.87 – Franklin India Prima Plus Fund
9.09 – Franklin India Bluechip Fund