For freelancers and businesspersons, STP, not SIP, is your best friend

Just because Sachin Tendulkar is most Indians' favourite batsman doesn't mean he has to be yours too. Maybe Glenn McGrath's gawky, ill-at-ease stint with the bat gets you going. To each your own. Similarly, SIP can't be everyone's cup of tea. While SIP is sahi hai and widely viewed as the de facto investment style, it is not a cookie-cutter solution for all - especially if you are an irregular income earner (freelancer, business owner or self-employed). So, if you fall into this camp, it's not SIP but STP (short for systematic transfer plan) that should be on your speed dial. That's because SIPs require you to invest diligently and systematically at a specific time, a luxury you may not enjoy.

This article was originally published on October 12, 2023.