SIP investments are a good idea because it is not easy for everyone to time the markets accurately
26-Oct-2015 •Research Desk
I want to know which is the better option: investing ₹10,000 every month on my own in a scheme for one year or investing ₹10,000 every month via a SIP in the same scheme during the same period? Both investments are in the same fund - SBI Pharma Fund. I am comfortable investing through online by AMC websites.
Are you planning to time the market? For example, you will decide the date on which you will invest the amount every month depending on the market conditions? Well, good luck. But be forewarned. It is not easy to time the market. That is, buying when the market is down and selling when it is high.
Otherwise, both methods will have the same result. An SIP is nothing but investing a fixed amount every month on a particular date. If the idea is to invest directly in a scheme and save on agent's commission, you can start investing via a monthly SIP in the direct plan of a scheme of your choice.