I have been investing in the stock market from the last 8 years and the best way I was investing is through SIP or Systematic Investment Plan. Now for the starters/begineers the SIP is the blessings, because through that you can save & invest first and then use the remaining income for the expense.
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But when you get to that point where you can save as per your wish then SIP is not enough. See SIP means we invest at any day of the month. Now the problem with this approach is that you save and then you think you are done. But instead of that we will continue to invest through SIP an then we should also invest whenever their is favorable conditions in the market.
For example, when the market is continuing to go down the SIP will give you more units that's correct. But at the same time you can invest more when the market is doen which can be through lumpsum so that when the market goes up you will get benefit. I am not saying that you should catch the falling knife, that's why when the market is going down the best way to invest is through the market Index.
When the market goes down the index will also go down so investing gives us more units and thus when it goes up we will be in profit.i know we will not get money always to invest, that's why we should keep some money aside for the situations like this. And then when the time comes, invest everything into the market. And that's why SIP is not enough, you have to do extra to earn more money in the long term
