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.
This story is from the June 2022 edition of Investors India.
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This story is from the June 2022 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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