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SIPs Or Additional Purchases

What is the difference between SIPs and additional purchases…

What is the difference between an SIP and an additional purchase for equal amount every month, especially in a nil-entry load regime?
- Dadi Seth

One opts for SIP for the convenience it offers through automatic transfer of funds on a pre-planned date each month in a fund. If one instead invests equal amounts each month on the same date, it is transferring the convenience on to oneself and controlling it instead. There is no difference in either of the approaches as far as the way the investments will behave.



This article was originally published on February 21, 2011.

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