Opinion | Why SIPs in debt MFs should be a part of your overall financial plan
The benefit of cost averaging is there in debt fund SIPs as well, maybe less than equities
We all know the concept and logic of systematic investment plans (SIPs), which is to average out the cost of your investments through disciplined purchases, particularly when the market is down. Whenever we think of SIPs, consciously or unconsciously, we think of equity investments, not debt. There is a reason for this: the equity market is relatively more volatile and the significance of buying at dips is that much stronger. However, there is merit in having an SIP in your debt fund allocation as well. Let’s see why.