Liquid Fund ---> <SIP> ---> Equity Fund

K

KoolSIM

Member
#1
#1
I have read suggestions that one must park excess money in a liquid fund and then transfer funds from there into an equity mutual fund via SIP. How does this process work?

Could someone demonstrate this process with an example? I am having a hard time wondering how does this strategy work.
 
D

drsambu123

Active Member
#2
#2
KoolSIM said:
I have read suggestions that one must park excess money in a liquid fund and then transfer funds from there into an equity mutual fund via SIP. How does this process work?

Could someone demonstrate this process with an example? I am having a hard time wondering how does this strategy work.
Click to expand...
Considering the volatile nature of the market, investing through SIP is better than lumpsum investment for retail investors. That is the principle behind telling to invest in liquid and transfer to Equity MF if u get lumpsum amount.... It doesnt mean always superior to singletime investment. For example if market starts moving up in one direction we may gain less in SIP
Predicting market movements most of the time wrong even for experts.
So take ur own decision
 
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