When it receives income in the form of dividends from stocks it owns, the fund will pay shareholders nearly all of the profits. When the price of the securities in a fund rises, the fund may elect to sell those securities and there will be a capital gains which is distributed to you. If the securities increase in value, but the fund does not sell, the value of the funds shares increases. Your investment has gained in value. Market conditions will never be just right.
Markets fluctuate constantly.
There will never be that right time when everything in the market is just perfect. The right time to start is today. In Mutual Funds Buy a quality domestic fund that is a proven performance leader. Reinvest all dividends and capital gains back into it. Hold your fund for a minimum of 10 to 15 years.