POSTED BY May 4, 2012 9:37 pm COMMENTS (3)ON
I want to start SIP Mutual Fund investment, never done before.
I have selected two funds 1.) HDFC Equity and 2.) Canara Robeco Equity Tax Saver to start with, please suggest other MF also.
I have sharekhan trading account, which allows me to buy above MFs online to my account. I think thru sharekhan I have option to buy same MFs anytime (when market downs) or any date with any amount, compare to SIP I guess selected date every month buys MF with same amount.
Is it good to buy MF by own or to do thru SIP ?
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3 replies on this article “Mutual Funds Thru Trading Account”
Dear Jipal, if possible please invest thru SIP. Do not try to time the market for your purchase. Invest for 15-20 years. Keep an eye on the performance of your funds.
if you are comfortable, you may invest in MF using online portals fundsindia or moneysights.
Go via SIP as it would remove the resistance to invest when the markets are higher. The option to invest when ever you want is open when you invest via SIPs as well.
Try to break the MF investments into different sectors such as Large Cap, Mid, Small, Sector and invest a % of your funds into each of the category. This would provide a good return while balancing your overall risk.
If you intend to invest yourself there can be many things that can go wrong – You may be busy on a day the market is down or on the day you had planned to invest/You may be travelling for business or vacation with no access to invest/You may fall sick for 3 months and miss investing etc.
SIP just builds a discipline to regularly invest in the market.
I would recommend you start a SIP and let it run for a long time. If you love to time the market then when markets fall some 200+ points on any given day just go and pump little more money (before 3 PM if directly with AMC; Check the time limit if doing thru an intermediary like Sharekhan)!