Best form of MF's investment:SIP or One-Time

Question

Iam having suffient money to invest in mutual funds either One-Time or SIP.I have head that people go for SIP only when they can't invest so much at a time it mimises market ups and downs.Can't One-Time Investment mimises market ups and downs?suggest me a best option

Answer 1

It's usually better to go via the SIP route if you are not market savvy and don't know how to time the market. SIP is safer since you spread your investments over market cycles. SIP works best over longer tenures (2+ years). Besides, investing regularly induces discipline into your Financial Planning.

SIP is best in the current market situations, where the markets are volatile and move up and down every trading day, without much direction. More often than not you end up collecting more units of the fund than what you would have had if you invested one time. However SIP is a losing proposition if the market is continuously moving higher every week.

Its better to pick 2 or three funds and start a SIP into each one of them, on 3 different calendar dates - so that you spread your investments equally over the month, this increases your chances of picking up units at market lows.

Enjoy your SIP's, all the best :)

-Ashwin

http://www.EaseOfMoney.com

Answer 2

It all depends on what type of investor you are and what trend the current market is showing. If you are looking at higher returns and are ready to take more market risks, SIP is certainly not for you. But is you want to play safe and are satisfied with low/ moderate returns you can go in for an SIP option. Also, in bearish markets, SIP option offers a considerable safeguard against erosion of your investments.

Answer 3

mutual fund is low risk investment instead of direct investment to equity market/sharemarket one time investment is lock you when the market is in down condition so sip is best way because you buy the assest at down condition and also in up condition so your units is growing in rapid way so at the time of going out of the mutual fund you got a 40percent return  

Answer 4

S I P

Answer 5

well make ur slef clear abt one thng: u cant time market

u can never buy at lowest price and sell at highest

SIP is basically used to average buying levels by those who can  put the entire amount in one shot.