Prajna Capital - An Investment Guide

In the last few days, investors in the stock markets have seen it all. From the Sensex highs of 21,000 to the steep fall to 15,700 in and the complete U-turn the markets took to recover. An investor who was convinced that the bear market was on and sold off his holdings would be a poor, wise man today. Similarly, a person would waited for the markets to bottom out before buying stocks would have missed out the opportunity to buy stocks at lower valuations. Probably, the only investor who has benefited by the quick fall and subsequent rise of the markets is a systematic investment plan ( SIP ) investor. SIP is a simple, tried and tested strategy designed to help in investors' wealth creation in a disciplined manner over the long term. A disciplined approach to investing will provide you with these benefits: 1) Power of compounding 2) Makes market timing Irrelevant 3) Rupee cost Averaging 4) Convenience Power of compounding Many investors delay investment decision-making, as they ca...