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Tag: sip investing

  • How SIP Investors Can Use Support & Resistance Zones to Build Confidence

    SIP investing is supposed to be simple. You pick a good fund or stock, set a monthly amount, and automate the rest. No emotions. No overthinking. Just consistency.


    But even the most disciplined SIP investors check their holdings once in a while—and wonder:
    “Did I just buy at the top again?”
    “Should I pause and wait for a dip?”
    “Is this stock really at a good level?”

    That’s where a basic understanding of support and resistance comes in—not to time the market, but to feel more in rhythm with it. At Zebu, we’ve seen more SIP users start to explore charts—not to become traders, but to make peace with volatility. And in that process, support and resistance zones have become quietly useful.


    What Are Support and Resistance Zones—Really?

    Forget the technical definitions for a moment. Here’s the simple version:

    • Support is a level where a stock or index tends to stop falling. It’s where buyers feel the price is “worth it.”
    • Resistance is a level where it tends to stop rising. It’s where sellers often step in.

    Think of support as a floor, and resistance as a ceiling. Prices may bounce off them or break through—but they often matter because many people think they matter.

    They’re not fixed lines. They’re zones. And they’re not predictions. They’re just reference points.


    Why Should SIP Investors Care?

    If you’re investing regularly—monthly, quarterly, or even annually—knowing where support and resistance zones lie can help you:

    Stay calm when prices dip near known support
    Avoid chasing stocks that are right at long-term resistance
    Choose better entry points when you manually top up
    Understand if recent performance is part of a pattern—or a potential shift


    Again, this isn’t about stopping your SIP every time a resistance is near. It’s about context.


    A Practical Example

    Let’s say you’re doing a SIP into a quality mid-cap stock—say, ABC Industries.

    You notice the stock has bounced from ₹720–740 three times in the last six months. That’s a support zone.

    On the upside, every time it hits ₹840–860, it pulls back. That’s a resistance zone.

    Now imagine your SIP executes at ₹850. It’s still okay—you’re building long-term. But knowing this zone exists might help you:

    • Manually top up if it dips again near ₹740
    • Pause optional additions if it runs ahead of earnings and hits ₹860
    • Stay patient if it dips post-purchase, because you expected that zone to attract buyers

    This isn’t prediction. It’s preparation.

    What the Market Is Doing Right Now

    In July 2025, Nifty is trading around 23,400, while Sensex hovers above 77,000. We’ve seen:

    • Recent support near 22,900 on Nift
    • Resistance around 23,500–23,600
    • PSU banks and capital goods showing relative strength
    • FMCG stocks pausing after strong runs

    If you’re SIP-ing into index ETFs or sector-specific funds, this information gives you a map—not a rulebook.

    For instance, a PSU-focused SIP may ride short-term momentum. An FMCG-focused one may cool temporarily. But support zones below recent dips suggest buyers remain active.

    Using Support & Resistance Without Overthinking

    You don’t need to spend hours on charts. Here’s a simple routine:

    1. Log into Zebu → Check the stock or index you’re investing in
    2. Use basic chart view → Select 6-month or 1-year timeframe
    3. Look for clusters → Price zones where moves repeatedly slow, reverse, or gather volume
    4. Set alerts → Use Zebu tools to notify you when your asset nears those zones

    Then forget it until you need it.

    These zones aren’t guarantees. But they help filter noise. Instead of reacting to a 3% drop, you’ll think, “Ah, back near support.” That mindset shift matters.

    Common Questions We Hear

    Q: Should I stop my SIP near resistance?
    Not necessarily. But you might choose to pause optional top-ups or diversify new funds elsewhere.

    Q: What if support fails?
    That happens. It doesn’t mean your SIP was wrong. But it might prompt a deeper look at why the stock or fund broke structure—news, results, sentiment.

    Q: Can I do this without charts?
    Basic support/resistance data is built into many Zebu screens. You don’t need to draw anything. Just glance.

    Where This Really Helps: Emotional Control

    The real benefit of using support and resistance as an SIP investor is not better timing. It’s less panic.

    • You’ll stop feeling like every market dip is a mistake
    • You’ll stop buying out of FOMO at resistance.
    • You’ll ride volatility with context.

    We’ve seen this play out across Zebu’s delivery-based users. The ones who use charts—not obsessively, but observationally—tend to hold better, longer, and with more confidence.

    Zebu Tools That Help You Do This Quietly

    Our platform supports non-intrusive investing. That means:

    • Chart views that aren’t cluttered with signals
    • Alerts tied to price levels—not just price change
    • Watchlist summaries that show bounce zones and momentum levels
    • Delivery snapshots that help you track entry points over time

    Because most SIP investors don’t want noise. They want a calm check-in now and then—enough to feel grounded.

    Final Thought

    Support and resistance zones won’t change your financial goals. But they might help you stay with them longer. If your SIP is into something solid, short-term movements shouldn’t throw you. But knowing where the price has historically turned can anchor your confidence—and make you feel less like you’re flying blind.

    At Zebu, we don’t want every investor to become a chart reader. We just want every investor to feel like they can see what matters. Because investing, when it’s done quietly and consistently, shouldn’t feel confusing. It should feel yours.

    Disclaimer

    This article is meant for educational purposes only and does not constitute investment advice or financial recommendations. Support and resistance zones are based on historical data and do not guarantee future performance. Zebu encourages users to consult with a certified advisor before making investment decisions based on technical indicators or personal interpretations.

    FAQs

    1. How can SIP investors use support and resistance?

      Support and resistance in stock market help SIP investors identify price zones where stocks are likely to bounce or face selling pressure, aiding better timing decisions.

    2. When to buy using support and resistance?

      Buying near strong support levels and avoiding purchases near resistance in stock market can improve entry points and reduce risk.

    3. Do support and resistance work for long-term SIP investments?

      Yes, resistance level in stock market can guide SIP investors on when to adjust allocations or pause contributions, complementing long-term goals.

    4. What tools can SIP investors use to find support and resistance?

      Charts, moving averages, and trend lines are common tools to spot support and resistance zones effectively.

    5. Can support and resistance help improve SIP returns?

      Yes, using these zones can improve timing decisions, helping SIP investors optimize returns over the long term.

  • What gives more profit in Mutual Funds – LUMPSUM or MONTHLY SIP?

    Hello there! Let’s discuss mutual fund buying in India and the age-old argument between lump payment and monthly Systematic Investment Plans (SIPs).


    What are these two categories of assets, first? Lump-sum investing refers to investing a significant amount of cash in a mutual fund all at once. SIPs, on the other hand, entail making regular, typically monthly, investments of a set amount of money.

    Let’s now examine the advantages and disadvantages of each strategy.

    For those who have a large amount of cash accessible to spend, lump sum investments can be profitable. If the market is favourable, the investor can profit from instant returns while also earning sizeable returns in a brief amount of time. However, because the investment is made all at once, there are also greater dangers involved. If the market does badly, the owner could sustain sizable losses.

    SIPs, on the other hand, provide a more methodical strategy to investing. Investors can benefit from the power of compounding and average out the cost of investment by consistently spending a set sum of money. Due to the fact that the funding is stretched out over time, SIPs also assist in minimising the effects of market volatility. The profits, however, might be lower than those from lump-sum investments, and buyers might lose out on the chance to make more money quickly.

    Which is preferable, then? Your risk tolerance and financial objectives are really what determine this. Lump sum investments might be a wise choice if you have a large sum of money accessible and are prepared to take on greater risks. SIPs, on the other hand, might be a better option if you’re looking for a methodical approach to spending and are prepared to contribute over an extended period of time.

    Benefits of Lumpsum Purchases

    The possibility for greater profits quickly is one of the most important benefits of lump sum investments. Compared to a SIP, the individual can achieve substantial profits on their investment in a quicker amount of time if the market circumstances are advantageous. For those who have a large amount of cash on hand and want to make a sizable investment, lump sum purchases may also be advantageous.

    Cons: However, lump sum purchases also carry greater levels of risk. Since the investment is made all at once, the individual may sustain sizable losses if the market performs badly. Lumpsum investments are also not a good choice for investors who don’t have a lot of cash on hand because they might not be able to benefit from the possible profits.

    SIPs:
    Pros:
    The methodical strategy to investing that SIPs offer is among their biggest advantages. Investors can form the practise of saving and investing by setting aside a set quantity of money at regular intervals. As the purchaser gets units at various rates over time, this strategy also aids in averaging out the cost of the investment. Due to the fact that the funding is stretched out over time, SIPs also assist in minimising the effects of market volatility.

    Cons: SIP profits, however, might be less than those from lump-sum purchases. The possibility of greater returns over a brief period of time is less likely because the expenditure is spread out over time. Additionally, the investor might receive lower returns than they would have if they had made a single amount investment if the market performs badly over the course of the investment.

    In summation, SIPs and lump sum purchases each have advantages and disadvantages. Before choosing a course of action, it’s critical to think about your financial objectives and risk tolerance. Invest wisely!

  • Monthly vs Yearly SIP Investing: Which is Better?

    Now that you’ve learned everything there is to know about SIP investing, the big issue is: what is the ideal investment tenure? Should you make a monthly or annual SIP investment?

    Though many individuals are familiar with monthly SIPs, they are less familiar with annual SIPs.

    Assume Mr. A sets aside a portion of his monthly salary for the SIP investment before paying any other costs. He doesn’t have to worry about the investment frequency as long as his cash flow and investment frequency are both the same. It gets tough when he does not have a consistent cash flow because his investments will suffer. In such cases, he may want to explore a yearly SIP investment.

    People who are unable to make decisions based on what suits them and what does not can use basic calculations before making a decision. There are a number of SIP calculators online that can help you compare returns based on whether you invest monthly or annually. The calculations are based on the mutual fund’s NAV history, and the results can be derived for any investment period if the NAV data for that period is available.

    Are you also interested in other investment opportunities that can give you high returns? Then consider Zebu to get started, as a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey.

    Which SIP Investment yields the highest returns?

    It is widely assumed that more disciplined SIP investment yields higher returns. Regular investing will help you stay on top of market volatility because you will be investing at both high and low points. The average outcome will be perfect. If the market rises on the date of the investment for a SIP investment with a large gap between investment times, you will lose out on the rewards.

    On the other hand, if you are investing on a daily basis, you do not need to be concerned with market movement or keep a close eye on it. This is because you invest on a regular basis and the market is available to you at all times.

    When it comes to returns, the longer the investment time, the less variation there will be in the return value, regardless of the tenure you choose. According to research, the difference between daily, monthly, and quarterly SIP investments is only 1 to 2 percentage points. Even while daily SIP investments have always yielded higher returns, they have always been marginal.

    Cash Flow and SIP Investment
    SIP investments should always be assigned to your cash flow and income, as we’ve said many times before. A monthly SIP should be the most convenient option for salaried folks because they receive their pay on a monthly basis and can invest on a regular basis. They can easily provide their banks an ECS command to ensure that money is deducted from their accounts on a specific date.

    It’s best to keep the debit for the first week of each month so that you can prepare for the rest of your expenses. They must ensure that they have sufficient finances to make the SIP investment on a daily basis and that the investment is not stopped.

    The key benefit of having a daily SIP investment is that it allows you to average your investment costs. However, daily SIP investments are generally not suggested for a variety of reasons.

    The most typical reason is that your bank may refuse to transfer funds from your account on a daily basis. Second, there is a danger that you will miss a payment, which will jeopardise your investment. The last and most essential one is that calculating the tax due to capital gains will be a major headache.

    Because quarterly SIPs are not adept at capturing market changes, it is best to stick to monthly SIPs. Having a daily SIP investment can also result in 25-30 bank transfer entries, which might be difficult to keep track of. As a result, the best time to invest in SIPs is on a monthly basis.

    Risk Factor

    When selecting a SIP investment option, it’s important to consider the risk factor as well as the cash flow factor. The lower the SIP investment frequency, the greater the danger, because the market will vary and you will be unable to keep track of it.

    The frequency with which you invest should be determined by your willingness to incur risks. In such cases, monthly SIP investment is usually recommended because it gives you an advantage over other tenures, as well as the benefit of averaging rupee cost and assisting with cash flow management. Even if you receive a large sum, stay organised and invest wisely. At the end of the day, the decision is yours to make, and you have a greater understanding of your wealth objectives.

    As a reputed share broker company we offer lowest brokerage options and a seamless online trading platform to help you with your investment journey. Contact Zebu to know more on how to get started on your share market investment journey.

  • The What, How and Why of SIPs

    SIPs are simply the way in which you plan your investments. You can start investing little sums, one instalment at a time, over a period of years with the help of a SIP investment and develop your wealth.

    Compounding is at work here, and if you keep investing for a long time, it will pay off handsomely. It is the amount of time you spend investing that matters, and not when you start investing.

    When it comes to starting investments today, the first two things that come to mind are mutual fund investments and systematic investment plans (SIPs). Mutual funds can help you not only build wealth but also save money and achieve financial independence. SIP investments, like mutual fund investments, are becoming increasingly popular.

    SIP allows you to buy mutual fund units at your convenience and within your budget. To minimise any last-minute payment inconsistencies, investors usually strive to maintain the SIP debit date close to the salary date. The money is automatically deducted from your bank account based on the bank’s standing instructions. It also helps in the formation of financial discipline in investors.

    However if you consider investing or trading in share market, we at Zebu a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market.

    How Do You Begin SIP Investing?

    You can purchase mutual funds directly from direct fund companies, either online or offline, or both. Depending on your option, you can open a SIP account by visiting your nearest bank or by going online. The funds can be purchased in a flat sum or over time through a systematic investment plan (SIP). Agents can also assist you in purchasing mutual funds. To begin trading, all you need to do is open a trading account and complete the mandatory KYC. And we at Zebu are here to help you with that. Please get in touch with us to know more about investing in SIPs and how you can build your wealth.

    How Do You Pick the Best Mutual Fund?

    There are so many investment options available today that deciding which one is best for you can be incredibly challenging.

    The various mutual fund plans are further classified as equity, debt, or hybrid funds. The mutual fund you’ve chosen should be a good fit for your long-term objectives. If your objective is to retire early, for example, you should choose a fund that will help you increase your money in the shortest amount of time. Make it a point to look at the fund’s long-term record, the fund manager’s performance, and the expense ratio. All of this information can be found on the fund’s website.

    Which Option Should You Pick?

    Almost all of the funds available these days provide you with the option of choosing between two options: dividend or growth. If you choose the dividend fund option, you will be paid on a regular basis according to the fund’s due date.

    The growth option, on the other hand, allows you to reinvest your dividends, resulting in higher returns and a higher net asset value. Depending on your needs and preferences, you can select one of the two possibilities.

    Which should you choose: Direct or Regular?

    Almost every fund on the market today has two options: direct or regular. There are no intermediaries in the direct one because it is sold straight by the fund houses. The traditional one has agents and mediators in the middle, resulting in a greater expense ratio and lesser profits. Direct funds are a superior option if you’re seeking long-term investment options.

    What should the quantity of investment be?

    The biggest advantage of SIP investing is that you can invest any amount you like, even as little as INR500 every month. Minimum values vary depending on the scheme. You can use a SIP calculator to figure out how much to invest in order to get the desired end result.

    For example, if you require Rs 1 crore in the next 20 years, you should invest INR.10000 every month in a scheme that will provide you with 12% annual returns.

    Returns

    All of the funds’ returns are calculated according to the specified dates, and they are also available on the fund’s website. Take your time to learn about the fund’s short and long-term returns to gain a clear picture of its performance.

    Risks

    There’s an old adage that great risks lead to great rewards. SIP investments work in a similar way. You can easily earn some decent profits if you are ready to take chances. The returns are primarily determined by the market’s volatility and how it operates.

    The equity funds are invested in stocks, and the returns are entirely contingent on the stock’s market success. Debt funds are low-risk investments that often invest in government bonds and treasury bills, among other things. However, due to the microeconomics involved, even these cannot be considered risk-free.

    Tax

    When you try to redeem your investment after the fund’s duration has ended, the units you invested are redeemed on a first-in, first-out basis. The units you bought, in the beginning, will be redeemed first, followed by the units you bought afterwards.

    Long-term capital gains tax exemption is available for equity funds that are considered long-term investments. If you opt to redeem stock units before the one-year period is through, you will be subject to a 14.5 per cent short-term capital gain tax. For an amount up to Rs 10 lakh each year, equity returns are tax-free.

    Debt fund investments are only deemed long-term investments until they have been successfully completed for three years, at which point you will be eligible for tax benefits. This money is taxed at a 38.45 per cent rate.

    How do you keep track of your SIP?

    SIPs, like any other investment, must be tracked. You just cannot leave them unattended, despite the fact that they are considered safe and reliable. The performance of mutual funds can be tracked using their statements. If you notice any discrepancies and the fund’s performance falls short of your expectations, you can switch it at any time or redeem the units you deposited.

    As we mentioned earlier if you are planning to invest or trade, we at Zebu a share trading company offer the lowest brokerage for intraday trading and are one of top brokers in share market.