I think Mutual Fund is better because there is single MF to track (their financial and investment).
While SIP has multiple of them while 1 may not be doing well but others may(due to their entry at the wrong time) or vice versa.
MF, I can buy whatever amount I like there (if I have) and not when I do not have money.
Also no regular DP charge.
What am I missing about SIp?
View on r/NepalStock by tprototype_x
Sip is basically mf, but instead you invest multiple times instead of once. Returns are also similar.
SIP is not a new kind of investment. It’s just buying mutual funds regularly. Mutual funds’ NAVs keep changing. If you buy 20000 Mutual fund units at once you’ll pay 10/unit. But in SIP, some months you might be able to buy at Rs. 8/unit. Some months it might get to 11/unit. Still, it is an investment plan that reminds you periodically to invest, and you do so. You can set the investments to monthly, once in two months, once in three months, once in six months, or once in a year.
It’s designed for people who start out with a little money but wanna keep adding to the investment gradually, and they might end up with having 20,000 units of mutual fund at either more or less than 10/unit. It depends on how well the fund is doing. You can cancel it anytime. I think the only downfall is that every single time you purchase through SIPs, Rs. 25 DP charge will be deducted.
SIP