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POSTED BY ON June 9, 2012 5:17 pm COMMENTS (4)
Hi
In this volatile market situation, should we continue to invest in SIPs? or should we stop investing in SIPs and look for tradional investments like FD / recurring?
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You should continue with your SIPs atleast till the time Sensex doesn’t reach 20k levels. It is currently the best time to continue with the SIPs.
SIP works wonders only when markets fluctuate and swing both ways. Your investment co relation with index should come down using SIP and hence your gains over the duration increases. What you need to be observant is if your MF investments are following the investment benchmark it is supposed to follow.
SIP works because you have a monthly (regular) flow of income. And not for as my other reason.
Also your saying that MF should follow / beat its benchmark is absolutely correct. I would like to add that you need to ascertain that the same benchmark is suitable for you. Getting a bse 500 index based fund should not be compared with a fund based on snsex.
Dear Kshama, so you mean to say that you ‘ll stop investing in the market when it’s fluctuating between Mount 15K to 18K (the sensex levels) & ‘ll return only when there ‘ll be mount 20 or 21 or may 25K.
Think on your own thinking. You are going to make a classic mistake of stopping the investments, when these can really bring the great returns if keep continue.
Thanks
Ashal