The mutual funds industry has made SIP or systematic investment plan a very popular mode of investment for people of modest means who wish to grow their wealth outside of the traditional modes of investment like Bank Fixed Deposit schemes, National Savings Certificates and LIC policies. But the same people haven’t really extended the same principle to equity investment.
While mutual fund investment has its advantages in terms of perceived low risk, stock investment is a more flexible and potentially lucrative way of wealth creation even for people with modest means. In fact it might be a good idea even for beginners to get into direct equity investment by following some kind of a systematic equity investment plan and get hold of quality stocks even if it is, one at a time. This is a great strategy to employ when the market is seeing lows.
As a matter of fact 10paisa.com offers exactly this type of recommendations to its subscribers which it has dubbed SSI (Systematic Stock Investment). 10paisa.com suggests investors to go for good quality small and midcap stocks in small quantities, which could be cashed in for handsome returns once the markets sees a bounce back.
In an uncertain market, one can leverage low prices to buy quality stocks over a long period of time. As long as one buys the maximum number of stocks at a time of low prices and provided one does so at regular intervals, one will be able to keep the average cost of investment low. Not only does Systematic Stock Investment help you spread out and diversify your investment, it also helps you reap a higher ROI (Return on Investment).
Considering that the Indian economy is the fastest growing one in the world, it makes eminent sense for savvy retail investors to give Systematic Stock Investment or SSI a shot. If you are not too sure about which stocks to pick, you can always turn to experts like 10paisa.com for recommendations. Given the fact that SSI is a well-planned and calibrated investment strategy, it is only right that you seek quality stocks to implement it.