Dalal Street Investments
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SIP – The Art of Investing in volatile(falling/rising) emerging markets.

June 11, 2006

On Thursday(June 8th) the market closed at 9295. Last time the market closed at these levels around mid December 2005. I bet a lot more people were buying at that time than they are today. Same index levels, different reactions. The simple rule of winning in the stock market is to Buy low and Sell high. Most investors may find that they have been Buying high to sell higher or Buying high and Selling low when the market reverses its trend.

Have a look at the following HDFC Growth Fund spreadsheet. It is self explanatory on how SIP(Systematic Investment Plan) helps an investor gain in the longer run.

It has been proven since the past 10 years in the context of Indian stock market and it will probably be true for the next 25 years on Dalal Street. You shop and spend at those fancy malls and don’t you want to earn from the same malls ? Yes your mutual fund manager will invest in those retail companies and make money for you while you spend.

Check out this SIP calculator to calculate how much money you want after 10 to 25 years and how much you can invest monthly. Kindly invest small amount of money in Equity Growth Funds for the next 10 years. Check out what MoneyControl.com expert has to say about SIP here.

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