SIP vs Lumpsum investment

I have two Mutual Fund SIPs, the amount gets deducted on 14 and 15th of every month for the last 10 months. I have noticed that the market is not always favorable for investment at that time so I have this question whether I should take control over the investment date and use my Demat account to make the SIP1+SIP2 investment myself when I see that the market is down? The investment date will vary every month. Is this a good approach?

asked Jul 14 '11 at 18:24 by A9S6 66449


Its difficult to time the market. There is still no guarantee that dates that will be chosen by you in a month will be best. If you can guess these dates correctly, its best.

You can stop your SIP and transact yourself every month. But it will need some discipline and punctuality.

Cost generally averages out in case of SIP payment. There can be 0.5-1% here and there due to timing.

answered Jul 18 '11 at 15:34 by pankaj 5.2k320

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The cost of lumpsum investment is Rs. 100 per transaction through Demat account (ICICI Direct) which I think is the only downside. If I make 12 purchases in a year, I'll loose Rs. 1200 just to make purchases. For SIP its Rs. 30/transaction.
(Jul 28 '11 at 10:53) A9S6
You stop investing through ICICI direct as its too costly. Read other options here: http://www.pankajbatra.com/india/how-to-transact-mutual-funds-online-directly/
(Jul 28 '11 at 13:47) pankaj

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Asked: Jul 14 '11 at 18:24

Seen: 2,475 times

Last updated: Jul 28 '11 at 13:47