It has been our constant endeavor to provide investors a bouquet of varied investment avenues to suit all market environments.

Timing the market is an exercise in futility. Why? Simply because you cannot. Everyone wants to buy low and sell high, but no one knows when it is “low enough” to buy and “high enough” to sell. The moment you try to second-guess the market and accordingly time your purchases and sales, you could miss out on some great investment opportunities.

A Systematic Investment Plan (SIP) does help in providing you with a disciplined approach to investing. But it also tends to give you better returns in the end. That is because your investments will continue irrespective of the state of the market. And by investing fixed amounts at all times, it evens out. You end up with more units when the market is down and fewer when it is up. In this way, your cost of acquisition evens out.

Once you select a good fund(s), the next step is to stay in for the long haul. It is only over the long term that the investment accumulates and the losses decrease. Let’s say you did a SIP in HDFC Equity – Growth. As you can see in the table, the longer the investment, the better the return.

SIPs work best over time

How to invest smartly

• A SIP is a tool for long-term investments.
• Fund selection is of importance.
• Select funds that are from different AMCs and different styles.
• If it is a small amount, start with one fund.
• If you plan to do a SIP with a slightly larger amount, say Rs. 10,000, put Rs 5,000 in one fund and an equal amount in another.

We recommend you to do the following Mutual Fund SIPs.

You may select either all or any One / Two of them.

• Hdfc Equity Fund
• Birla Sun Life Frontline Equity Fund
• ICICI Prudential Focused Bluechip Equity Fund
• DSP B R Top 100 Equity Fund

To get more information on the above products, please feel free to contact us.