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Sunday, 6 September 2015

WHY BOTHER, SIP IT!


WHY BOTHER, SIP IT!
Most advisors suggest Systematic Investment Plans are a must-have in every investment portfolio. It saves you the hassle of timing your investments:
1  FIXED TIMINGS: Through an SIP, you pay a fixed amount on a particular date every month. This means your timing of investment is fixed.
 2  IF MARKET IS DOWN: You do not have to worry about timing your investments. If the market is down when you invest, you end up with more MF units for the same amount.
 3  FIX UNITS: With an SIP, you can also fix the number of units purchased every month. So, the final monthly investment differs.
4  COST-AVERAGING: When you invest through varying market cycles, your monthly investments differ. Over time, though, your average cost may turn lower.
5  NEVER MISS A CHANCE: In a fluctuating market, you never know the right time. You may invest in lump sum only to realise the market fell further, and you missed that opportunity.
6  DON’T WAIT FOR MARKET BOTTOMS: There will come a time when the market stops falling and starts rising. Finding this bottom is difficult. An SIP will help you benefit t from this.
Happy Investing

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