RE:SIP
by JERRY on May 04, 2006 06:46 PM
It's like racing, if you spread your money on all the horses "likely horses at that" you are likely to be lucky,at least you won't be very unlucky,that is the law of averages,but a true gambler, plays on the hunch,he is impulsive, so he might put all his eggs in one basket, which if all goes well will be very very well indeed, but it might be catastrophic also.There is another kind of gammbler who would subvert the chance in his own favour,but I am not sure you are in that league. Stock Market is not a perfect game of chance, here one can reduce the odds by studying the market, the stock history,the company etc, and that is what the brokers do in mutual funds. So if you have made one large investment, there is nothing wrong,in case you are a visionary(Like you see this reliance fund which has been oversubscribed esp in view of Iran backtracking),Or you are a gambler(gamblers don't like to work for instance spreading your money would require an effort which many of us are not capable of, brokers do exactly this thing all the time).This thing can go on but I think it is already getting too long, so think about it,by the way I am not a professional investor, think for yourself.
