I have decided to invest ₹5 lakh in one stroke. I have selected a fund category as well as the scheme. I have some doubts:
- Potdar M R
The idea of investing when the market is at the lowest is very appealing, but it is almost impossible to implement. This is because nobody can predict when the market would hit the lowest. That is why we believe a systematic investment plan (SIP) or systematic withdrawal plan (STP) is a better way to invest in equity, as it allows investors to invest regularly without worrying about the conditions of the market. The method allows investors to average the cost of purchase and enhance the returns from investment.
A direct plan helps you save money on commissions and it may add to your total returns over a period of time. YTD (or year to date) underperformance tells you that the investment has underperformed from the beginning of the year to the date you have chosen.
This article was originally published on August 13, 2015.
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