Question about mutual funds.?

Generally one invests in mutual fund in SIP mode, once in a month. Does it make sense to break up the amount invested per month in smaller amounts and invest on different days in one month? e.g., instead of investing Rs1000 once in a month, one can invest twice (on two different days), each time for Rs500. This way one can take advantage of two different NAVs on different days. What is your opinion?

3 Replies to “Question about mutual funds.?”

  1. Boss, you are here for best answer.
    So basically you want to get more advantage of market volatility.
    At present Bharti-AXA offers daily SIP plan in which you can go for daily SIP.
    But as per my knowledge minimum daily SIP is 300/-.
    Check the following link for more details

  2. Unless there is too much of volatility, this will not work out. And if you are going to invest a small sum, definitely the trouble is not at all worth the complex process.

    And think of those various charges and expenses every time you do this.

    If you apply such principle while purchasing shares / stocks, I can understand. But the basic idea in investing through Mutual Fund route is not to take on lot of headaches. Then why break your SIP in small amounts?

  3. Yes there will be better averaging. But if the amount is only Rs 500 , it might not make much difference.

    If you are investing Rs 10,000 per month , it might make sense. Keeping track is a problem.

    Instead invest lumpsum in a liquid fund and opt for STP . It is easier to track.

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