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Wednesday, February 02, 2011

MF and Equity SIPs - The way to go

Having invested through Mutual Funds SIPs (Strategic Investment Plans?) over the past 2 years religiously, I decided to calculate my annual rate of return today and was pleasantly surprised to see that it had returned over 17%. While this is not mind-boggling, it is still a great number because I barely spent more than a few minutes in making this investment. On the other hand, I've burnt my hands on so many stocks that the only big winner in the stocks is the ESOPs that I got from Infosys at about a 6th of the current price. Big Deal eh!!!

Today, I decided to start off the next big step in my investment/trading cycle. While I will continue to trade in FnO, my investments are largely going to be via the SIP route. I today invested in 2 Equity SIPs. Instead of buying 20 shares worth about 1lakh, I decided to invest in 20 installments of 5000 each over the next twenty weeks. Equity SIPs - Hope you do as well as the MF SIPs. The only challenge I guess is going to be disciplined enough not to track this on a daily/weekly basis and let the strategy work. It worked with MFs since I never ever went to that page. With Stocks, I am not so sure that's going to happen any time soon.