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Terms used : SIP - Systematic Investment plan , STP - Systematic transfer plan
Sometimes you are confused about choosing the type of investment. The following article will help you to decide on SIP / STP or lumpsum investment in stock markets.
Both type of investment plans has its own merits and timing.
When the equity markets have bottomed up and are in a stage of rising up, lumpsum investment could be better choice.
SIP/ STP is better only when the stock markets turn volatile because it buys more units when markets drop and fewer units when markets rise. This will help to average the cost.
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