Can I use SIP way of investing in Stocks ?

POSTED BY jvenkatkrish ON August 19, 2014 5:38 pm COMMENTS (3)

Though SIP in equity has been discussed some time back, Can SIP way of investing work for stocks (10 Large Cap Scrips) for a horizon of over 5 years

3 replies on this article “Can I use SIP way of investing in Stocks ?”

  1. jvenkatkrish says:

    I agree with Sumit.

  2. Sumit says:

    Hi Venkat,

    SIP is good way to invest in share market, be it in mutual fund or in direct stocks.

    But in mutual fund SIP- you are investing money on a fixed date on every month but the Fund Manager is not buying the stocks necessarily on that day, you are just giving the money to the Fund House, and the Fund Manager will utilize the money whenever he/she sees opportunity.
    Hence though regularly investing in stocks is better to average out the money, but I do not prefer to buy stocks on a fixed date, I prefer to buy regularly on dips, sometimes more, sometime less seeing market opportunity.

    Thanks
    Sumit

  3. Lokesh Jain says:

    Hi Venkat,

    Surely SIP in Equity is a good option. But only if you know equities in and out. Rather better would be to invest through mutual funds as if you invest directly, you wouldnt be sure that the investments you picked up will beat the index or not.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.