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Is it the right time to start SIP in equity funds?

Investors shouldn't place their investment decisions solely on the basis of market levels

Is the present bear market right phase to start a Systematic Investment Plan (SIP) in equity funds for a long time?
- Bishwajeet Kumar Sinha

It is always the right time to start a Systematic Investment Plan (SIP) in an equity mutual funds. It is true that the market has corrected around 15 per cent the last year. But nobody can say with certainty whether the market would fall more or start going up from the current levels. That is why investors shouldn't place their investment decisions solely on the basis of market levels. Irrespective of the market conditions, investors should go ahead with their investment in equity to meet their long-term goals. An SIP over a long period will help them to average the purchase cost and enhance the returns from the investment.

This article was originally published on January 22, 2016.

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