Which is better to invest?Direct buying of mutual fund or invest in mutual fund through SIP.?Please help.
If you know which fund to buy, then opt for Mutual Fund via SIP in the direct way.
If you are not sure, the please do speak to a good financial adviser and figure out which funds suits your financial requirement and opt for SIP.
While purchasing a Mutual Fund, you can either invest in Lumpsum or start a SIP.
The advantage of a SIP is as your units are being bought peridocally over time, the advantage is that it keeps averaging your buy price and this would ensure you get a good buy average price as opposed to just buying at one shot when the markets are going up.
The advantage of a lumpsum comes out when there is a big market fall in a bull market phase. You know the market is going to recover but when the fall happens, you are placed with an opportunity to buy your Mutual Fund at an attractive NAV. So buying at one shot will be advantageous here.
To get the most out of a Mutual fund, you can combine both SIP and Lumpsum in a way that will yield more profits to you.
If you know how to invest in mutual funds then you can invest directly. You can consult a financial advisor if you are new. Financial advisors guide you to invest in the right funds that suit your needs. Kotak Mutual Funds offers investments in mutual funds through SIP investment plan.
Hi Rahul, your question is quite ambigue, but I’ll be able to answer in two cases.
Case I: If your question refers to “Lumpsum or SIP?”
Then in that way, SIP is having unique advantage of “Rupee Cost Averaging” while Lumpsum don’t offers that way.
For lumpsum, one needs to worry when is the right time to invest, but for SIP, you can invest anytime periodically without worry.
Case II: If your question refers to “Direct Fund or Regular Fund”
If you’re qualified about what, where and how to invest either by online or offline, go for Direct Fund which does not require any commission.
Otherwise, you can go to MF Adviser or MF broker, send the documents to them and they will invest in Regular Fund for you. (just around 1-2% commission)