Market conditions and Suggestions on SIP ?

POSTED BY Dinesh Bhat ON January 3, 2015 9:58 am COMMENTS (2)

Hi,

I am planning to invest on SIP. But I am not sure, if the market is in favorable condition for me. Can you please help me in this regard?

I request your help in getting the following questions answered :

  1. Is this the right time to begin SIP? as the market is in good condition and fund values are already at their peak values.
  2. Any market correction expected in very near future? so that, the impact on investing with  SIP would be less.
  3. Best funds to be targeted for SIP. I am looking for good returns some time in 3-4 years.
  4. Which is the best online portal to begin SIP? (I have demat account in Sharekhan).
  5. Are the returns from SIP investment are tax free?

Thanks in advance,

Dinesh

2 replies on this article “Market conditions and Suggestions on SIP ?”

  1. Arshad Mirza says:
    January 4, 2015 at 6:27 pm

    1.Anytime is right time for investment. If you haven’t yet started investing you are losing time and opportunity. My suggestion, don’t worry about market peak (relative number-nobody know what is peak), start investing immediately.
    2.Nobody, read NOBODY can predict market movement. Volatility is part of the investing journey. best you can do is to top up your SIPs when market goes down by 2% or more…
    3.for 3-4 years period, you should look for a debt fund. Investing in equity fund for 3-4 years period could be harmful.
    4.better go direct with AMC. This way you will save on trail commission. And on long term saving trail commission will make a difference on final corpus.
    5.Different tax treatment for debt & equity based funds. Equity based funds are tax free after 1 year while debt fund has lock-in of 3 years. You can Google for more info on tax treatment.
    Hope it helps.

    Reply
    1. Manish Chauhan says:
      January 5, 2015 at 7:45 pm

      Thanks for answering !

      Reply

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