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Why good old SIPs are still the best options?

Posted by sandhyaravii on May 28, 2012

investing regularly monthly, quarterly or yearly by SIP you will get the benifit of averaging and not bothered of the market ups and down, when the market is up you will buy less units and when the market is down you will buy more units (this will help in averaging our price), generally we are not prepared to buy when the markets are falling whereas we prompted to buy more when the markets are in bullish phase due to negative sentiments in this way we misses the opportunity to buy in the dips and selling in the highs, through SIP we just avoid this error and over time, it will work on investors favour only, SIP is also suggested to all who can not afford to invest in lump sum in the market, Just Select a good fund with good track record showing an constant growth of atleast 20% to 25% per annum over a period of 5 to 6 years this shows that the fund has been through various stages of the market and has survived them, hence the chances of such a fund performing well over the coming years are better versus new fund which was launched only in the last few years of the bull run.

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