Decoding Equity SIPs And Mutual Fund SIPs
18 May 2023
An SIP is an investment strategy where a fixed amount of money at regular intervals. They are a great way to invest for the long-term, as they helpaverage out your costs and lower risk.
The two main Avenues of SIPs are – mutual fund SIPs and stock SIPs.
Mutual Fund SIPs
They are suitable for investors who want to invest in stock markets but lack the time and / or expertise to pick individual stocks and hence choose the mutual fund route to invest in the market.
Stock SIPs
They are suitable for investors who are confident of investing in a single stock and have the time and expertise to pick stocks on a regular basis.
Why SIP
Rupee Cost Averaging
Discipline Investing
No Emotional Bias
Stock SIP Vs Mutual Fund SIP in a nutshell
| Feature | Stock SIP | Mutual Fund SIP |
|---|---|---|
| Asset class | Equity | Equity/Debt/Gold |
| Risk level | Higher | Lower |
| Management | Self-managed | Professionally managed |
| Time commitment | Requires more time to manage | Requires less time to manage |
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