Systematic Investment Plan is a good way for any new investor to start trading in the market, said Vikram Limaye, CEO, National Stock Exchange (NSE).

"I think the SIP trend is a healthy trend because you are not trying to time the market. When there is volatility in the market, people do not stop investing and disappear from the market, that is the idea of an SIP," said Limaye.

You have to invest through cycles, you have to invest through ups and downs and invest for the long term, he said, adding that over a long period of time the equity asset class has proven to provide substantially higher returns than most other asset classes.

It is best to entrust your money to professionals who actually do this for a living and if you do it through an SIP route then you are taking care of cycles, Limaye added.

"SIP is the right way to go, invest through cycles, invest for the long-term, invest a small sum of money that you believe in terms of your own portfolio allocation and risk appetite that allows you to sleep well at night as well as grow your wealth over time," he said.

First Published:Nov 27, 2018 9:59 PM IST