Do mutual funds invest in futures trading? SIP involves specific dates. Do changes on the date impact cost of investment? How will an investor benefit (or not benefit) from such events?
- Sankar Narayanen
Mutual funds invest in futures and options to hedge their investments. They can't have open positions in futures and options.
SIP is a preferred method to invest regularly in stocks irrespective of the market conditions. This method imparts financial discipline and it also results in cost averaging or averaging of the purchase price. It really doesn't matter whether a change in date is beneficial or not beneficial in the short term, as it all averages out over a long period of time.
This article was originally published on October 15, 2015.
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