Every time someone who is unfamiliar with market dynamics tries to time the market, he takes an uninformed and uncalculated risk.
Simply put - every time the stock market hits a high level, some investors enter the market thinking that since the market is up, returns will be good. Similarly, when the markets are down, some investors exit the market, thinking - What's the point, I've lost money anyway! So how can investors still make the most of the equity markets, despite of its volatility? The answer is through Systematic Investment Plan (SIP). It is the best way, especially for newer investors to approach the equity markets for long-term wealth creation and attaining financial goals.
In a SIP, the investor regularly invests a sum of money every month into buying units of a mutual fund. Because investment is made in small parts or instalments, SIP helps investors avoid the risk of timing the markets and creates wealth in a disciplined manner by averaging the cost of Investments.
Here's how investing through Systematic Investment Plans would benefit an investor.
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Denne historien er fra June 2022-utgaven av Investors India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
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