Questions about SIP in stocks
What is a SIP in stocks?
A standing plan that invests a fixed amount in chosen shares on a set date each month. Shares come in whole units, so the amount and the share price decide how many are added.
How is a stock SIP different from a mutual fund SIP?
A fund SIP adds fractional units of one fund; a stock SIP adds whole shares that sit in your own demat. The guide covers costs, tax and the whole share effect.
How do I measure the return on a SIP?
With XIRR, which weights each instalment by its own date. CAGR suits a single sum invested once; the XIRR calculator takes a list of dated amounts.
Does the SIP date matter?
The SIP date guide tests each day of the month on the Nifty 50 record; the gap between dates is small next to the amount and the years invested.