How many of you are doing SIP on stocks ? What is the best strategy for doing it ? How do you select stocks for this ? What goals or for what time frame are you doing it ? Unlike SIP in mutual funds, since you have to manage it yourself, how hard is it to maintain the discipline ? Thank you
View on r/NepalStock by VeterinarianLanky910
If you have done research and have conviction on that company, you could go all in when you feel its trading below your intrinsic value and MOS (higher risk higher return). Other way could be SIP as you mentioned it will keep on averaging price thus balancing risk and return. It depends on your risk appetite.
Doing SIP on stocks and basically my selection depends on dividend history. Last three year dividend on average about 12% and PBV between 1.5 and 2 ideally.
I haven’t started it myself but as my knowledge SIP in stock would be buying stock every month no matter the price looking out for companies which give a good dividend every year and look how strong the company is fundamentally. Secondly as all long term investors say don’t put all your eggs in the same basket possibly diversify your investment as much as possible. Great start in SIP on stock would be NABIL in commercial banks,RADHI in hydro