InvestorQ : can i start sip in tatamotors?
uttam sutradhar made post

can i start sip in tatamotors?

Answer
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Neelam Naik answered.
12 months ago


I suppose you are talking about a systematic investment plan which entails a gradual allocation over a long period to reduce your average cost. My only question is why Tata Motors. The stock has been under a lot of pressure and any purchase now has to be down with a five-year perspective. Tata Motors has a good EV (electrical vehicles) story going it its favour but that will work out only over the next 5-7 years.

Instead, if you want to does a SIP go for a more diversified approach. If it is not possible with direct equities, you can also look at doing SIP on mutual funds to gradually create wealth over time. You can opt for either diversified funds or multi-cap funds, where you get the benefit of large-cap and mid-cap stocks. Think it through before starting SIP on a particular stock because you are unnecessarily exposing yourself to concentration risk.


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12 months ago


SIP is an instrument for investment in Mutual Funds. It can't be used for investments in shares directly. Also, this is not the best time to invest in Tata Motors as the auto segment is not doing great in general.