{"id":846,"date":"2017-04-03T11:36:07","date_gmt":"2017-04-03T11:36:07","guid":{"rendered":"http:\/\/myplanning.in\/?p=846"},"modified":"2026-03-16T07:19:54","modified_gmt":"2026-03-16T07:19:54","slug":"difference-stock-sip-vs-mutual-fund-sip","status":"publish","type":"post","link":"https:\/\/myplanning.in\/ru\/mutual-fund\/difference-stock-sip-vs-mutual-fund-sip\/","title":{"rendered":"Difference between Stock SIP VS Mutual Fund SIP"},"content":{"rendered":"
Client :<\/strong> Hi Mr. Advisor, I want to know the difference between Stock SIP vs Mutual Fund SIP. <\/div>\n
Which one is better & why ? Can u explain both the concepts ?<\/div>\n
 <\/div>\n
Advisor :<\/strong> Yes sir surely. Why not<\/div>\n
 <\/div>\n
Well,  Stock SIP is averaging and mutual fund SIP is rupee cost averaging.<\/div>\n
 <\/div>\n
Albert Einstein very well said…<\/div>\n
“Compound interest is the eighth wonder of the world”<\/strong><\/div>\n
 <\/div>\n
we said…<\/div>\n
“SIP is ninth wonder of the world”<\/strong><\/div>\n
 <\/div>\n
Client :<\/strong> Oho… How !!! <\/div>\n
 <\/div>\n
Advisor :<\/strong> Let assume, you want to buy 10  Kg. Apple every month…. <\/div>\n
Price of apple in January  – 20 per kg. Your expense is Rs.200, right?<\/div>\n
Price of apple in February- 40 per kg. Your expense is Rs.400<\/div>\n
The average per kg cost is 20 + 40 = 60 \/ 2 = 30 per kg.<\/div>\n
 <\/div>\n
This is average and your stock SIP is working on same principle.<\/div>\n
 <\/div>\n
Client :<\/strong> Then what is rupee cost averaging?<\/div>\n
 <\/div>\n
Advisor :<\/strong> Suppose your budget is to spend Rs. 200 per month on Apple. No matter what is the price.<\/div>\n
 <\/div>\n
Price of apple in Jan – 20 per kg, so you can buy 10 kg. (200\/20)<\/div>\n
 <\/div>\n
Price of apple in Feb – 40 per kg. So you have 5 kg. (200\/40)<\/div>\n
 <\/div>\n
Now tell me the average of per\/kg apple. <\/div>\n
 <\/div>\n
Client :<\/strong> Same 30 per kg<\/div>\n
 <\/div>\n
Advisor :<\/strong> No…<\/div>\n
 <\/div>\n
Number of kg you bought = 10 + 5 = 15 Kg<\/div>\n
Total cost = 200 + 200 = 400 Rs.<\/div>\n
Average cost = 400 \/15 = 26.66<\/div>\n
 <\/div>\n
Now in the above example  as stock SIP, you bought of  apple is averaged at Rs. 30 per kg.  & as Mutual Fund SIP, your buying cost is averaged at Rs. 26. 66 per Kg. for the same apples.<\/div>\n
 <\/div>\n
This is Rupee cost averaging. Mutual fund SIP is working on this principle.<\/strong><\/div>\n
 <\/div>\n
Client :<\/strong> Oh great!! So every time our cost per unit is less than its avg.  Now I fully understood rupee cost averaging. It’s awesome…<\/div>\n","protected":false},"excerpt":{"rendered":"

Client : Hi Mr. Advisor, I want to know the difference between Stock SIP vs Mutual Fund SIP.  Which one is better & why ? Can u explain both the concepts ?   Advisor : Yes sir surely. Why not   Well,  Stock SIP is averaging and mutual fund SIP is rupee cost averaging.   […]<\/p>\n","protected":false},"author":1,"featured_media":848,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[19],"tags":[27,28],"class_list":["post-846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-fund","tag-mf-sip","tag-stock-sip"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/posts\/846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/comments?post=846"}],"version-history":[{"count":1,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/posts\/846\/revisions"}],"predecessor-version":[{"id":1936,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/posts\/846\/revisions\/1936"}],"wp:attachment":[{"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/media?parent=846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/categories?post=846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myplanning.in\/ru\/wp-json\/wp\/v2\/tags?post=846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}