Value averaging a better system

Systematic transfer plan works well if the investor has a lump sum

The Systematic Investment Plan (SIP) is popular and practical for anybody with periodic savings. It is a good way to invest in volatile assets such as equity, exchange traded funds, equity mutual funds (MFs) and debt-MFs.

If prices fall, an SIP automatically averages down the price of acquisition, making it a hedge. This ensures the investor is poised to make greater profits eventually when the market cycle turns. An SIP is less effective when prices rise. But then the investor is making a profit anyway.

A variation is the systematic transfer plan (STP) where the investor transfers holdings from one