What is SIP ?

by khalid on 28/09/2009 · 2 comments

SIP

SIP is one of the most effective way to invest in equities. SIP is systematic Investment Plan. Ask any investment advisor and he will surely recommend SIP way of the investment.

In this method of investment you invest a certain amount each month into the equity mutual fund of your choice. This amount can be as low as Rs 100. This amount is either directly debited from your bank account or you have to issue post-dated cheques to the fund house.

SIP has many advantages. For one, t removes the stress of timing the market Also it allows you to invest the amount you are comfortable with into the mutual fund of your choice. You need not invest the whole amount at a single shot. As stock market is very volatile, your money buys fewer units at the market high position and more units when the market is low.

There are disadvantageous too, one of its drawbacks is that it fails to deliver in rising market. It works better in the volatile market.

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{ 2 comments… read them below or add one }

Aman @ EquiTipz December 12, 2009

Hi,

I must say your presentation of things is really commendable.. I would love if I have such great writers for my blog….

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khalid January 26, 2011

Hi Aman,

Thanks for dropping by. Its my pleasure to connect to your great blog.
I love your blog.

khalid

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