3 Ways In Which SIPs Help You Benefit From Market Swings

  Author: Kundan Kishore

Not too many investors would like to invest when the markets are volatile or turbulent. However, with mutual fund systematic investment plans (SIPs) you can actually benefit from market turbulence, especially in equity markets. This is most effective in equity funds which invest the money from investors in equities.

Provides benefits of rupee cost averaging SIPs make you buy lesser number of units when markets are at a high and more units when the market is low. Over time, this brings down the average cost of buying mutual fund units. In the process, you gains get enhanced. 

Benefit from regular investments With SIPs, you can invest regularly irrespective of market conditions and get the best of market opportunities at all times. You don’t need to be on lookout for a good time to invest. This is thanks to the process of rupee cost averaging which is constantly at work

Prevents emotions from influencing investments Regular investments through SIPs prevent your emotions from influencing your investments. For instance, you don’t buy more units just because the markets are rising or vice versa. SIPs help you stick on to your investment discipline.

Suggested video 3 Ways SIPs Benefit You from Market Swings