Stock SIP

#1
Hello Trade Gurus,

My investment funda in shares is buy good bluechip shares for long termand on dips.

However, I came across the concept of a "Stock SIP" recently.
Like mutual fund SIP, now some people say that we should invest in Stock SIP i.e. invest a certain amount in shares at a particular day each month without worrying about the market is up or down.
They say that like a mutual fund SIP, stock SIP will give an averaging which will result in stable returns. Any suggestions/comments on this?



Regards,
Kunal.
 

comm4300

Well-Known Member
#2
Good idea. But the only thing is that stock sip purchase is not automatic unlike mutual fund sip.

so, if you are taking the pain of manual purchase each month, why not use your original strategy of buying on dips?

each month: have x amount allocated for your stock sip; wait for the appropriate dip in the stock price and buy. this way you compulsorily invest each month and are not restricted to buy only on a particular date.

you just need to have the discipline to continue this as it is not automated like an ecs.

all the best.
 
#3
Hello Trade Gurus,

My investment funda in shares is buy good bluechip shares for long termand on dips.

However, I came across the concept of a "Stock SIP" recently.
Like mutual fund SIP, now some people say that we should invest in Stock SIP i.e. invest a certain amount in shares at a particular day each month without worrying about the market is up or down.
They say that like a mutual fund SIP, stock SIP will give an averaging which will result in stable returns. Any suggestions/comments on this?



Regards,
Kunal.
According to me investment returns are a function of price and this could be the best price you could get. Any SIP works best when markets are going lower. So, if you have a good scheme, continue with the SIP.
 
#5
Good idea. But the only thing is that stock sip purchase is not automatic unlike mutual fund sip.

so, if you are taking the pain of manual purchase each month, why not use your original strategy of buying on dips?

each month: have x amount allocated for your stock sip; wait for the appropriate dip in the stock price and buy. this way you compulsorily invest each month and are not restricted to buy only on a particular date.

you just need to have the discipline to continue this as it is not automated like an ecs.

all the best.
to remain a disciplined investor one must go on buying systematically everymonth.
 

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