Suggest investing method

[kc_624]

hai i am new to investing ......
i am planning to invest 3000/month via sip.
is it better to invest on two days (like 5th,20th of same month which differ by 15 days) with 1500 per day or better to go on same day with total 3000.

please give me a gud suggession with explanation.

thanku.

[vince]

Originally Posted by kc_624

hai i am new to investing ......
i am planning to invest 3000/month via sip.
is it better to invest on two days (like 5th,20th of same month which differ by 15 days) with 1500 per day or better to go on same day with total 3000.

please give me a gud suggession with explanation.

thanku.

Hi there,

Since it is not your intention to time the markets, I think it would make no difference eitherways.

However since you bring up the matter of SIP, it would work only as long as the bull cycle is intact with minor corrections and markets continue higher.

I have seen the hype created by fund managers pushing this method of investing, but I fail to understand how this would work in a bear market where the primary trend would be down and a bear trend could well last as long as a bull market which is more than a couple of years old now in our case.

Another point the analysts keep harping on is not to catch a falling knife, so how come they keep telling the MF investor to keep buying a falling market via SIP . Why the different yardsticks?

Have a look at the Nasdaq even today it is nowhere near its peak 4500-5000from where it had crashed. Not that I am suggesting that we are at a peak.

It would really help to get in more views on this.

[niranjan190]

I hope the following thread helps to take a good decision

http://www.traderji.com/mutual-funds...nt-vs-sip.html

[rkthomas]

hai since u r planning to invest through mf first of all find the funds which are suitable for u. invest more money when the NAV is less so that u can make good returns.

[rvm123]

if u want to invest Rs.3000/-p.m. first u select the scheme in which u wish to invest. Instead of investing on some ( 1 or 2) standard day in a month, wait for the market to fall. In case the market falls like today (28.2.2007), where the fall was about 500 points, the NAV of all the schemes on 1.3.2007 will be lesser. so u can invest tommorrow to get maximum advantage. Similarly, every month, whenever market fall by 100 or 200 points on a single day, i think, the next day will be the best day to invest

[kc_624]

thank u all for giving very gud suggessions............

i want to know one more thing about NAV.....
If I am going to buy a mutual fund today then the NAV of the fund will depend on todays sensex or on yesterdays sensex..? Plz tell me when NAV of a mutual fund will be calculated......?

[niranjan190]

If you place order before todays cutoff time( usually sometime in the afternoon),
you will get units based on todays share values. If you place the order after the cutoff time, you will get units based on tomorrows share values.

Lets say if the sensex fall today and you place an order before cutoff time, you will get more units.

If you place an order today after cutoff time, and if the sensex rises tomorrow you will end up getting less units as tomorrows NAV's are used .

remember, you will never get units based on yesterday's values.

NAV is calculated at the end of the every day

[kc_624]

Reply: Niranjan190

thanks for explaing in detail.......
so what do u mean is .......if i order today after cutoff time it is equavalent of ordering tommorow before cutoff time.......am i correct?Can u tell me the cutoff time for that........

[niranjan190]

Hi kc_624,
That is correct.
If you place an order today after cutoff time, it is equivalent of ordering tomorrow before cutoff time. You will get the units based on the NAV calculated at tomorrow end of day.

Regarding the cut-off time, I found this information from ICICIDirect..

" As per SEBI guidelines the cutoff time for accepting orders in Non-liquid funds is 1500 hrs and in Liquid funds it is 1200 hrs. However taking into account internal transaction processing time, ICICIdirect.com has kept the cutoff time, for accepting orders in Non-liquid funds as 1330 hrs and in Liquid funds as 1030 hrs."

Hope this information helps.

[Ram321]

Originally Posted by niranjan190

Hi kc_624,
That is correct.
If you place an order today after cutoff time, it is equivalent of ordering tomorrow before cutoff time. You will get the units based on the NAV calculated at tomorrow end of day.

Regarding the cut-off time, I found this information from ICICIDirect..

" As per SEBI guidelines the cutoff time for accepting orders in Non-liquid funds is 1500 hrs and in Liquid funds it is 1200 hrs. However taking into account internal transaction processing time, ICICIdirect.com has kept the cutoff time, for accepting orders in Non-liquid funds as 1330 hrs and in Liquid funds as 1030 hrs."

Hope this information helps.

Hi
How can we purchase units of NAV, if suppose i am putting my in taxgain of SBI MF as SIP monthly 2000/-.Then how can i purchase on specified date its already scheduled like 5th of every month.?
please suggest..are you telling purchase mfs through icicdirect.com?