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Individuals are often confronted with the dilemma of choosing the right investment option for their portfolio to invest their money. Two of the most prevalent types of investment options are stocks and mutual funds. This article is aimed at serving as a mutual fund investment guide for investors and solve their dilemma. If you are sceptical about investing a lumpsum amount, you might consider resorting to other options such as a systematic investment plan, commonly known as SIP . SIP investments help to stagger your investments over time. As an investor you can either put money in stock SIP or directly invest in mutual funds through SIP. Let’s understand what works best for your investment profile. What is stocks SIP? Stocks SIP work on a similar concept like mutual funds SIP. Under this, an investor can buy a predetermined or fixed quantity of shares at regular or specific intervals. For instance, you might consider purchasing 10 shares of an XYZ company at the beginning of the each

Despite the disastrous impact of the COVID-19 pandemic, mutual fund investors have remained committed to their mutual funds. However, are investors doing the right thing by staying invested? Should they look for opportunities to exit and await an opening to return when the dust settles? Or would they be missing out on the opportunity of a lifetime by not investing more in the markets at these levels? Assuming that you know what is an SIP, let’s understand if you should continue with your Systematic Investment Plan (SIP) .Following are four different scenarios that deserve different actions on your SIPs: Stay the course Continuing with your SIP investments means that your portfolio benefits from accumulating additional units when markets are down, bringing down your average cost of fund units.If your goals are same and you have passable time frame that will permit the investments to recover and fetch you the desired returns, then don’t fiddle with your SIP investments. Make sure to not

Systematic Investment Plan, commonly known as SIP , is a tool to invest in mutual funds. However, a lot of people often stop their journey of staying invested in SIPs after a time. Let’s understand the top 3 reasons why investors give a break to their SIP or stop them altogether. Waiting for the high market to cool When it comes to mutual fund investment, a market high is perceived as a blessing. Following this, several investors think that they need to stop their SIPs, thanks to market critics issuing warnings that a “market correction ” likely to happen. These investors intend tobegintheir SIPs again only when the market has finished “correcting”. This is a classic example of attempting to time the market. However, investors often forget the fact that as complex the markets are, they can go up even further. Losing money in a falling market The stock market is bound to witness frequent ups and downs. This is called market volatility and could be scary for a lot of investors. The marke