Friday 25 September, 2009

HDFC Securities - Shares As An SIP

HDFC Securities has launched something called Do It Yourself SIP. The difference being that instead of buying mutual funds in a systematic investment plan, you can buy shares on the 7th of the month worth a minimum of Rs 5,000, as an SIP.
The second good thing is that instead of buying shares via mutual funds and earning dividend through them, where they get to keep some of the earnings, you buy shares directly on your own name. And keep the dividend earned, which is tax free.
Now, there isn't an entry load on buying mutual funds, but there is an exit load. Here with HDFC Securities you buy shares, and there isn't any load, except a small yearly charge.
Plus, you can choose which shares to buy, or use the advice from HDFC Securities to decide.
The only clarity I haven't got is, after you sign some papers with HDFC Securities, is there a possibility to not buy anything in a month, say when the Sensex or Nifty are breaching dizzying heights?

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