Day Trading Stocks & Futures

vikas2131

Well-Known Member
One of my relative asked about starting SIP in a MF.
I told ki all the world markets are at all time high. 6-12 months mein correction aa sakti hai so return could be in negative. general public -ve return dekhkar panic mode mein aa jaati hai.
market correction se MF ki NAV mein bahut farak pad jaata hai kya ?
is it ok to start SIP now ? for 4-5 years duration.

I dont know much about these MF and their NAV and relation with nifty and stocks
One more correction of nifty to 10k is pending in my opinion.
 

Riskyman

Well-Known Member
@TraderRavi SIP is a averaging game. Question investor has to answer is.... What am I going to do if the market remains subdued for next 3 years? (considering time horizon is only 4-5 years).
To reap good benefits of SIP, one has to stay invested for longer periods of time.

This is return on a 4-5 year period. Exposure mainly to largecaps/index stocks.
sip.JPG


Below is a return on a the same fund held for 10 years.
sip 2.JPG


Note above return are in a bull market. We havent had a bear market after 2008 yet. So things can be different. I dont know.
Also, Return on each fund will differ on how the fund is churned from time to time. If someone has to invest now then its always better to stick with a bluechip/large cap fund.
 

travi

Well-Known Member
One of my relative asked about starting SIP in a MF.
I told ki all the world markets are at all time high. 6-12 months mein correction aa sakti hai so return could be in negative. general public -ve return dekhkar panic mode mein aa jaati hai.
market correction se MF ki NAV mein bahut farak pad jaata hai kya ?
is it ok to start SIP now ? for 4-5 years duration.

I dont know much about these MF and their NAV and relation with nifty and stocks
In theory It is OK to start SIP any time, the longer you are in the market, the better the averaging and therefore higher +ve expectancy,
but the nature of your relative and you is important otherwise he will call you every week.

Right now it may be that he is just thinking, then once NAV becomes even 2% -ve, he will start researching and then we know the consequence of half-baked knowledge also :DD
 

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