Need for dynamic SIP

We all do SIP, but SIP model is designed for the convenience of Mutual Fund Companies, not to optimize returns for investors.

On any month, with 20+ trading days, 3-4 days market tanks, with SENSEX falling 500-1000 points, about 4-5 days market goes up 500+ points and on other days it trades average, +/- 200, 250 points. SIP triggers on a specific day, no matter what happens in the market. If on the day of my SIP trigger market goes up, I get lesser units, lesser value. Two days later market tanks, my investment also loses value.

Solution is this- dynamic SIP. Invest NOT on a fixed date in the month, but on any day SENSEX drops say 1000+ points. If market doesn't tank, hold and wait.

Similarly redeem a bit if market goes up significantly, so that you can reinvest later when market tanks.

Watch a reel on this: 

View this post on Instagram

A post shared by Shrinidhi Hande (@enidhi)

Let me know what you think of this idea!