Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.

What is your pattern of investment? Are you systematic or sporadic?

Investing in regular periods or irregular periods are decided on various reasons, especially on the individual’s income growth.  The pattern of investment is either systematic or unsystematic and it is crucial to understand the benefits they yield and the reason for the difference in patterns. Read on to know the difference and to understand what kind of an investor you are.

Sporadic way of investing

Benefits of Systematic Investment Plan SIP

The investor has to decide goals while he chooses his investment route. The first type of investor invests an irregular amount at sporadic intervals in Mutual Funds. This option could be a far more expensive and complicated form of investment since the investment generally depends on his earning or bonus on a yearly cycle or he may be trying to time the market or when he has disposable income. For some investors this might be an ideal way of creating wealth, since they believe there would be no monthly commitment or no financial goals to achieve. For example, during our childhood some of us came in contact with a larger sum of money when our family dropped by for a visit or during festival times. We added it to our piggy bank without any monthly allowance, just like in sporadic investment.

Systematic style of investing 

This type of investor invests regularly to achieve his financial goals in the long term. Through this he invests in Mutual Fund Schemes at regular and committed intervals. Systematic Investment Plan aids you to achieve bigger financial goals with a small sum of amount invested in periodic intervals; weekly, fortnightly, monthly or quarterly. This Rupee Cost Averaging investment is simpler, profitable and affordable over a period of time. This kind of investment is disciplined and does not require one to time the market. It can be equated to the time when you put in a small amount from your pocket money, every month, in your piggy bank.  The small amounts that you invest every month, generates returns and similarly the returns upon the previous investment gets added to your new investments. By investing on a consistent schedule, one can gain from market dips without worrying about market crash.

Which kind of an investor are you?

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Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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