Value Invest Plan Is more Better Than Systematic Investment Plan

Yet systematic investment plans of mutual funds ( SIP) is considered to be the best , because it is not only the benefits but also the average cost advantage of investment is sorted .
However , investment is still way better than SIP , the value averaging investment plan or known as VIP . The Plan or SIP rupee cost averaging appears to be more effective .
Investment technique has been used as a VIP .
Now you must be wondering how the VIP SIP is different from the pros ? In SIP you invest a fixed amount at regular intervals keeps . The amount invested in the fund's NAV divided by the number obtained that determines how many units of each month See you around.
When coming into the market would lead to an increase in the NAV and get lower unit . In contrast to the declining market days, you get more units . The average cost to the investor can be found on the unit . It also adds Rupee cost averaging .
Regular investment in VIP :
VIP is also a way of regular investment . The amount to be invested every month but it is not fixed in advance . The amount of investment in different months, different can be. In the case of VIP is targeted returns .
Calculate monthly investment like this is something that every month you get a fixed return . Let us understand this through an example .
Suppose you invest Rs 1,000 per month and hope that you get a return of 15 percent . Three months after Suppose your portfolio is worth Rs 3,500 to Rs 4025 , while the estimated value of the portfolio should be next month . The next month you will have to invest only Rs 527 ( the difference between the actual portfolio value and the target portfolio ) .
VIP benefits of investing in
- According to most studies of value averaging investment performance of the system is better than SIPs .
- Using this method one can be confident that your financial goals and it does not depend on market returns .
- You want your portfolio to increase by 20 percent annually averaging methods used to value by bringing you can accomplish your goal .
VIP has some disadvantages :
- The biggest disadvantage is that the monthly installment of VIP ranging from zero to the upper limit set by the investor can be anything between .

- In addition, the market always moves in the same direction , whether upwards or downwards , from the VIP SIP The yield is lower than usual .