How long should one remain invested in an SIP? Is it better to shift to another SIP after receiving around 500 units from the earlier one?
Amit Kukreja, Bhopal
SIP is a facility to invest regularly in a disciplined manner. Given the fluctuations in the market, an SIP enables the investor to continue to invest without seeking to time the market. If one were to take conscious decisions to invest at certain points of time, such decisions can be difficult to implement either because of emotional considerations or simply due to inertia. SIP enables you to put your investments on auto mode. Therefore, there is no need to make a further timing decision in an SIP, wondering about the time to be in it and the time to shift. Choose from schemes with good track records, and go for a one-year SIP. End of the year, you can review your scheme and continue with the same or shift to another.
