What is the differnce between these 2 investment options?

Question

1. If i invest Rs. 10,000 in a MF per month,

2. If I go for a SIP that debits 10,000 from my account per month

wat will be the dfference in these two investment options?

Answer 1

   When u invest in first option Rs 10,000 per month in MF , then the day u will buy MF units that day 's NAV will suggest u a buy price. In a month u may see different prices of a MF scheme and different schemes can show different prices on different day in a month . once u invest in MF in first option than day may be any in a month (whice u think that now market will not further fall that day only u buy) and u pay a price . Some time u think that market will further dip so u stop buying but u could not buy because market takes u turn and go fast and climb again. So u can miss the opportunity. But in SIP u buy fixed no of  units on fixed date in a month. Say any date on 5or 10or 15or......so on....,So u do average , when market falls u get more units and if market climb then u get higher price . Here u r not required to time with market , u'r investment itself timed with market by SIP.

DR.AGARWAL

Answer 2

Its better if u, take a unit based insurace of Bajaj_Allianz,  you get 3 things in one 1)Insurance ,2)It is invested like m. fund in money market ,3) Money grows faster tha bank deposit ,4) u get Tax rebate also for details call9999631811 ,Delhi,(If u pay your self or by SIP it is on and the same thing , in SIP ur. a/c is debited by ECS.

Answer 3

On the first look, they sound the same.

SIP is the standard way to invest regularly into a MF. With SIP you have an option of using ECS, in which case all you need to do is sign a ECS authorization form while purchasing the MF. The Fund will then debit the prescribed amount from your account every month/quarter on a predefined date, without you having to put any extra effort. Heck, they even send you a SMS 3 days in advance before each SIP, so that you can ensure sufficient balance in your account. If your Bank/Branch does not allow ECS, you will then have to sign post dated check's and hand it over to the collection centre/agent.

You can also invest regularly yourself, without registering for a SIP. But chances are you will not be disciplined enough to invest promptly every month, besides you will have to walk up to your bank or call your agent home for every transaction. But then these days, AMC's provide online account facilities; but their service standards wrt fulfilling online access PIN requests are abysmally low.

-Ashwin

http://www.easeofmoney.com

Answer 4

To get the right answer of this question you should place an e-mail to

the administrator of the site:

www.sharetips.99k.org

through the link “Post Your Questions & Comments Here”.

Thanks.

Answer 5

Single investment is not able to beat market fluctuations

SIP investment is powerful in the sense of rupee cost averaging and leverage the profit from various market situations