Should I Invest in Fixed Deposit (FD) or Invest in SIP?

0
20
Should I Invest in Fixed Deposit (FD) or Invest in SIP?

An Equity Systematic Investment Plan is when an individual invests a fixed sum of money periodically over a long period of time to gain from the benefits of rupee cost averaging. Here the client gets to benefit from all the market prices of the units being bought by him/her. For example: if «A» starts an SIP of Rs 5000 per month, he will be investing only Rs 5000 no matter what the market price of the stock will be, when the market price of the unit or stock will be high he will get lesser units or shares and when the market price is low he will get more units or shares, but Rs 5000 will be fixed. This procedure helps the client to get better returns in the long run and also helps the client to make more money by way of compounding.

Dejar respuesta

Please enter your comment!
Please enter your name here