Stock SIP (Systematic Investment Plan)

SIP stands for Systematic Investment Plan.

Say you have picked a stock for purchase and waiting for the right price to buy, but the price does not come down and your patience is being tested. What do you do? Do you buy the stock at the higher price. or wait.The price simply refuses to come down. As you track the price, you only notice it going upwards, defying all valuations and fundamentals. But is a wonderful company and you must have the stock in your portfolio. What must you do?

In such a situation you can put a weekly/monthly SIP on the stock for a small quantity. Over a period of time you will have averaged out the price and accumulated your desired quantity. Once you have reached your target quantity. you can stop the SIP. Now you own the stock in your portfolio

Hope this helps. Happy Investing. Cheers. 🙂