Myths and Facts of SIPs

Myth : Systematic Investment Plans (SIPs) work best for the small retail investor.

Fact : SIP might be the answer for all types of investors since it does not have a bias towards high or low value investments. All that it requires is regular and disciplined savings.

Myth : It is best to not enter into SIPs if the market is on the rise.

Fact : It is not about the right time to enter the market. SIPs are all about focusing on staying invested for a longer tenure.

Myth :You can do better than SIP by timing the market accurately.

Fact : It is highly unlikely you will get it right all the time. It’s not about timing the market, but the amount of time you stay in the market.

Myth :SIPs are best for short term & not the long term.

Fact : Long term investment through SIPs can help offset the highs and lows, so that you may expect reasonable returns at the end.

Myth : Once an SIP is started, you can neither stop it in-between nor change the period of investment.

Fact : You can easily terminate the SIP or change its maturity date without paying any penalty.

If you like this info share with all your beloved ones.

Subscribe to our blog to get notified on our future useful info.




Leave a Reply