SIP Strategy: Picking the Most Profitable Day of the Month to Invest

A Systematic Investment Plan (SIP) is an attractive way to invest in equity for the long term. The fund houses are trying to make investing in SIP more friendly. Most fund houses provide flexible dates for investing through SIP but being regular in your investment matters the most.

You can invest between the 1st and the 28th of any month but the fund houses are now offering more flexibility. Now you can invest in SIP any day of the month. There is no particular profitable day to invest in SIP, you just have to invest regularly.  

The minimum SIP amount that can be invested has been reduced significantly. This will make them accessible to more investors and digital platforms. Though you need to invest regularly for a longer period.

Most investors prefer to stagger their SIP investment. The ‘Invest as you earn’ method works well with most people. This way you need not time the market. When you invest regularly for a long time you can benefit from rupee-cost-averaging. The amount of money invested through SIP is increasing with Rs. 14,749 crore being invested in mutual funds through SIP in May 2023. 

SIP Investment| Image Resource: appreciatewealth.com

Investing through SIP 

SIP allows you to invest a fixed amount of money in an investment portfolio at regular intervals like daily, weekly, monthly and quarterly. It is like recurring deposits in the bank but here the money gets invested into the stock market. You can invest in different asset classes without the need for saving a lump sum amount. 

When you invest money it earns returns and when this amount is invested it earns further returns. This is called compounding. SIP is a perfect way to capitalize on the power of compounding. By regularly investing the SIP amount in the investments of your choice for a long term you can build a significant corpus. 

SIP is one of the best ways to invest in the stock market because it helps to lower the risk of market volatility. As you invest a predetermined amount of money regularly irrespective of the market conditions or the stock price you need not time the market. When the stock prices are high fewer stocks are bought and when the stock prices fall more stocks are purchased. This helps to average the cost of your overall investments through the investment horizon.

Appreciate provides a trading app with a feature for investing online through SIP.

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