The corpus obtained when buying “low” or when the Nifty is below its 200 day moving average (dma) is compared with the corpus from buying “high” (nifty above 200 dma). Apologies for yet another post on this subject, but I had to satisfy my curiosity. Kindly bear with me.
Before we begin a clarification on nomenclature. As we all know, SIP is systematic investment plan. All thismeans, is investing with a system in place. Buying each month is just one of those systems. In the previous posts, I had used terms like low-SIP and high-SIP. This simply means, buying when the Nifty is below or above a certain average (10 month was used). The observation is made once a month and investing is done only the condition is satisfied.