i have experience of 3.5years in cash market. what i observe in this market that u just invest money for long term. surely u will get benefit. for long team means 5year. u get good return
In your article you have shown how an SIP in a volatile market gave Rs.3,000 (4%) more than a lump sum investment. That is all very fine and logically explainable. And also the easiest scenerio.
But I have my own view which is little beyond the conventional teaching and this is specially for those who have a lumpsum of money to invest in MF (considering they are already aware of their risk factor).
We have already laid out that SIP is benificial only if rhe market is volatile and not if the market is only rising.
My suggestion to those who have lumpsums is to invest at any time and not wait to time the market, but they should book profits when the market get exuberant and reinvest it when there are any dips. The signals when market run ahead are more obvious and when we see dips of 5-10% then reinvest the gains. This will improve your gains although it will also help the taxman too. Such proposition is for those who monitor their investments and have atleast some interest in the markets and keep abreast with the trends.
As very well described int he article, SIP is a great tool using the cost average fundamental. But, a cautious investor (and having a long term view) can actually be in a better position to invest when sensex shows a major dip. Historically speaking, there are atleast 2-3 such dips in each quarter (the defination of dip should vary from one investor to another) but, in case he invests in such time, his returns should be greatly enhanced (as compared to SIP)... additionally he should abstrain from investing at the peak time(can keep in bank and wait for the right oppurtunity), this can be considered as modified SIP resulting in a litte skewed (and higher) returns. Any different opinion is welcomed at abhaybhatnagar@yahoo.com
RE:SIP great tool for complusive saving.. but for investment? Questions... - Abhay Bhatnagar
by Sankran Maity on Aug 06, 2007 10:18 PM Permalink
Yeah, its so easy to invest during those times, you know what, I know for sure that the aret will again go down in exactly Tom hours, Dick minutes and Harry seconds, as easy as 1, 2, 3 ...
Can just Rs 3k difference make any impact on the investor decision for a long period? After all someone buying shares together would be able to make profit in the long run.
RE:great news!!
by krishna I on Aug 06, 2007 03:08 PM Permalink
the moral of the story, when the dhoti's rise up the sensex follows suit. but when the burkhas are covered little bit tighter, that is when the bears better watch out. overall the religious sentiment on the stock market is pretty strong
RE:National economy
by Campro on Aug 06, 2007 03:10 PM Permalink
right and are u on the wrong side of the divide, because u have lost ur shirt in the recent sensex crash?
