Systematic Investment Plans are one of the most coherent
systems for investing in the market. This systematic method of investment has
changed the people use to invest earlier. Although there are still few
misconceptions that are generally associated with these Systematic
Investment Plans which must be avoided to make sure the investor
understands all the aspects of their money being used in SIP. Here we have
narrowed down five most common myths that usually people take in the wrong
parameter.
Start SIP Mutual
Funds with lump sum amounts: SIP only work when you are businessman or
high-end salary generating group of people but this is completely wrong. One
can start as low as Rs 500 to make their beginning in the market and improve as
per their financial condition without any forceful decisions. Although entering
with lump sum amount is an option but it is generally recommended to business owners
who have income in their peak season when they invest while in the offseason
they let their investment get mature.
One must have Demat
Account to being their Mutual funds: It’s the most common general trends
that Mutual funds SIP are investments in stock although few are listed in
stocks most of them are not even listed. So these SIP’s have a different
spectrum of investor from being too risky to very low risk as per the
performance. Just fill the specific SIP form with a cheque and give to your Certified
Financial Planner and he or she will manage the rest of things there without
the need for any Demat account.
Don’t Invest in SIP
when the Markets are in bullish conditions: One mustn’t invest when the
trends are high as the rated are higher but this is just the common
misconception. SIP’s are long-term systematic investments that are not governed
by the fact high market trends will give lower returns it’s the length of the
investment that defines the success of these plans respectively for generating
large wealth creation.
SIP Mutual Funds are
for a shorter term only: The General trend is to invest in the market and
take the return as soon as possible. Don’t be mistaken for those people who
advised on short-term gain as there are hardly any with respect to SIP. These
SIP funds generally start from as low as Rs 500 to Rs 10000 as per your choice
with a duration that you are accustomed to. More time you give this investment
to mature more it gives in return is the fundamental of SIP.
Investing in high rated
Mutual Fund SIP ensures better returns in Future: Investing in the same
fund that has only positive growth recently might be taking a risk as markets
go up and down on a regular basis so there is no assurance that you will get
more benefit by investing in those high rated Mutual Funds SIP. These Systematic
Investment Plan needs to be monitored on a continuous basis on their
performance to be invested for longer terms.
At WealthCare India we understand the value of time and
money as the measurement of success for investment. We take pride in advising,
guiding and taking care of other people investments wisely for placing them
inside those large wealth creations in the future. Our Certified Professionals
uses their skills and expertise to take SIP on the higher growth trend always.
Source:
https://wealthcareinindia.wordpress.com/2017/11/29/busting-common-myths-of-sip/ |
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