Mutual fund SIP and stock SIP – which is the safer bet? Arnav Pandya explains

economictimes.indiatimes.com:

Arnav Pandya, Founder, Moneyeduschool, says “in a stock SIP, if you want to get that same kind of benefit as a mutual fund SIP, you will first of all need to have multiple stock SIPs to get a diversified portfolio. Second is that you need to do that effort every month. You have a facility wherein your brokerage house itself gives you some facility to do an SIP but still you need to be very careful in terms of how you are going about it. So, in terms of risk, there is a big difference.”
Everybody who is not directly investing in the stock markets finds the SIP way quite convenient. Firstly, what is your take on the mutual fund SIP as well as stock SIP route and how should one go about it? In terms of the returns, what should be the expectation and which one is a safer bet?
If you look at the basic term of systematic investing, the whole concept is that you put in an amount which is similar on a regular basis with the end result that over a period of time due to variations in the equity prices, you will get an average cost. Now, as far as mutual funds are concerned, we are very familiar with the entire SIP process where every month, for example, you put in a specific amount and then you get units against this. But the main important factor when you do an SIP in a mutual fund is that you are getting exposure to a complete portfolio by investing in the units, so that is point number one.

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Now, when you try and replicate the same thing with respect to a stock, the basic concept