InvestorQ : Why should I do SIPs in mutual funds and not in stocks directly?
leah Diaz made post

Why should I do SIPs in mutual funds and not in stocks directly?

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Purvesh answered.
2 years ago

It's always advisable to invest in both Stocks & Mutual funds. Mutual funds investment with SIP is a little safer investment

as compared to Stocks.
The Systematic investment plan amount can also be small and helps to select various fund options to invest. Its removes panic situation & headaches of markets. Its always advisable to invest money for longer duration say more than 5 yrs. The funds are also managed by professional managers and they help in the switching of funds as per situation of stock markets.

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Mary Joseph answered.
2 years ago

Of course, you can always do an SIP in stocks too. But remember that when you do an SIP in stocks you run the risk of direct investments in stock markets. So you need to track the stocks, track the news and other announcements as well as industry trends. When you invest in mutual funds, your fund manager takes the trouble of creating a strong portfolio for you and you also get the benefit of diversification. So equity SIP can be an alternative for your lump-sum investment in equities. It cannot be an alternative to a SIP in mutual funds.