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Will SIP(Systematic Investment Plan) help ease the loss of my Mutual Fund in this Volatile market?


Will SIP(Systematic Investment Plan) help ease the loss of my Mutual Fund in this Volatile market?

please try to understand & follow me i m always telling to everyone that PLEASE DONT INVEST IN ANY MUTUAL FUND SCHEME ACCEPT YOU NEED TAX EXEMPTION.
HOWEVER I ALWAYS PREFER NATIONAL SAVING CERTIFICATE /P.P.F/ R.B.I. BOND/ANY INFRASTRUCTURE BOND OR DEBENTURE/PLAIN L.I.C. POLICY INWHICH YOUR INVESTMENT DEPOSITED AS RS. NOT AS UNIT

WHAT HARM THINGS IN MUTUAL FUND:
A. MUTUAL FUND GIVES 20% TO 40% RETURN IN ANNUM- BUT IN SHARE INVESTMENT YOU WILL GET ATLEAST 100% PROFIT IN A YEAR .
B.IN MUTUAL FUND LOSS BECOME MORE THEN RETURN e.g. if mkt become bearish it's NAV VERY RAPIDLY THEN SHARE PRICE.
LAST WEEK ISELECT THE BEST SCRIPTS & INVEST ON IT ON LAST WEEK FALL VALUE OF THEM FALL NOT MORE THEN 1.5% -BUT IN MUTUAL FUND SCHEMES NAVS FELL DOWN BY 20-25%.
B. IN SHARE INVESTMENT EVERY THING IN YOUR HAND HOW TO SWITCH / EXIT/ENTRY
BUT IN MUTUAL FUND U CANT GUIDE TO ASSET MANAGER FOR PORTFOLIO.
C. I'LL SUGGEST U COMLETELY EXIT FROM THEM IN ANY HIKE OF NAV & INVEST IN SHARE DIRECTLY IF U NEED HELP FOR IT U CAN CONTACT ME ON-
uditdaharwal@gmail.com

May not be. Because at present NAVs are high and when you go on buying units on regular basis you are buying them at a higher rate. If there is a crash of stock market....it will have same effect that it has on shares. Because the NAV falls. (Net Asset Value)

SIPs are also a form of Mutual Investment with different features. It highly depends on the sharemarket performance.
one way to mitigate the loss is to know the fund managers worthiness and the diversification of the investments areas of that SIP.

Yes. In a big way.

YES, Provided u r long time investor

yes. u can minimise loss

yes, it will ease the loss in volatile market.
The main purpose of SIP is to `even out' the volatility as the investment is made every month.
If one has to prepare the chart with all volatility and build in SIP it will show smooth curve compared to volatility in stock market.
But one need to remain invested for 1-3 years to get full benefit of SIP.

Ofcourse it would. In the dwindling market, SIP will fetch you more units.

One can never time the market. Studies have shown that SIP averages the cost of units, the more frequent the SIP, the better. It is also better with equity funds than with debt and also better in volatile market. It definitely is lighter on the pocket; stay invested for the long term.

It averages out the volatiity and it provides the best return if pursued for a long term, say 5 years.

Anyways we earn also on monthly basis, only.

You must understand the logic behind investing thru SIP
- In SIP you are investing in a disciplined way without the worries of market trends, which in any case is beyond our control.
-By investing thru SIP you are allocating you future earnings to start working no sooner it comes to you.
- the benifit of SIP is visible after some time when the effect of compounding sets in,
- if you are young and have time the best way to accumulate wealth is by SIP
- last but not least have you heard-drop by drop you can fill an OCEAN...

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