- A good stock to SIP in will have:
- High Industry growth rate
- The firm should be building its market share
- A relatively new industry like AMC for example
- It should be able to protect its margins
- Via higher pricing, cost cutting, launching newer products etc
- If all of the above happens, its more ideal
- Industries/Sectors which can be SIPed in:
- Small Caps
- AMCs
- NBFC Small Caps
- US Tech majors
- Keep emotions aside
- Keep tracking individual stocks in your SIP watchlist
- Strategy to pump money per month in a stock:
- Have a monthly budget - Example 30k
- Deploy only when NIFTY falls
- If it doesnt fall by 15th of a month, deploy half of the budget (15k)
- If it doesnt fall by 30th, deploy remaining
- Step-up SIP
- When markets/stock is about to go up and when there is a scope for a growth of 20%+
- Step-down SIP
- When the market is taking a breather and about to consolidate
- Normal SIP
- When markets are in a consolidation phase
- Bulk buy
- When something is at a massive discount