Monday, January 22, 2007

Systematic Investment Planning

The SIP route is usually recommended because it helps you to

  • Phase out your entry into the equity markets over an extended period of time.
  • Helping you benefit from market cycles.
  • If there is a significant correction in stock prices even as you invest, you reap the benefit of that by acquiring some units at relatively low prices.

What happens when the minute you start your SIP, the market goes on increasing and takes a breather only when the SIP period is over. Guess, you are a victim of the famous Peter's law!

Among other things, it also says that whenever you are alone in the house, the bell rings when you just enter your bathroom!

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