Stock market For the past several months, there is quite volatile (unstable). Due to this, investors have also suffered a lot. In such a situation, if you are thinking of starting SIP, then what can be the best option. Whether it would be better to do weekly, monthly, 3 Mahi sip or lump-sum will be correct. If you are in this entangled, then Equity Market Expert and Chief Business Officer of PGIM India Mutual Fund, Abhishek Tiwari is telling what it would be better to do?
What is a systematic investment plan?
Systematic Investment Plan (SIP-SIP) is a feature, under which you invest a fixed amount in a mutual fund scheme every month or every 3 months on a date selected by yourself. SIP (Systematic Investment Plan) is the best way or medium to make a habit of regular investment. This is a good way to make the right use of money lying in your bank account, which you can spend in the event of not investing. SIP is a tool that makes us more disciplined and regular to investment.
Landish investment beneficial for whom
But if your income is not fixed (sometimes, sometimes less), then there can be a better way of lump sum investment. If you suddenly get a huge amount of money from bonus, gift or any other source, then you can invest that amount lump sum in a mutual fund scheme, even if your SIP is already running in that fund. For stable returns asset class (eg date funds), if you have money, a lump sum investment can also do a good job.
5 benefits of sip
- SIP is automatic, so it is a good way to use your bank account money correctly, which you could spend.
- In asset classes which have more fluctuations (such as stock markets), investing a small amount at regular intervals through SIP (SIP) is better.
- SIPs can be used for any goal, whether it is for a short term or for a long term.
- Keep separate SIPs for each goal, so that when a target is close to completion, you know which SIP to withdraw money.
- If you do SIP in equity funds and the investment duration is 10 years or more, then the chances of getting negative returns are very low.
Who choose in SIP or lump sum?
SIP or lump sum investment is a better option. This makes you a disciplined investor. Also helps you get better returns on investment. At the same time, by investing a lump sum, you are unable to take the benefit you deserve. Which method you choose from a lump sum or SIP depends on your earnings and the current situation. For those who have a fixed income every month, SIP is a better option, as it runs according to their monthly income and expenses. If you invest regularly through SIP, you are able to invest in both market fluctuations (speed and recession) situations. At the same time, those whose income is not fixed can opt for lump sum investment.
Disclaimer: This article has been written only for the purpose of information. Before any type of investment or before taking financial risks, consult your financial advisor. India TV will not be responsible for any type of risk.
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