SIP has become a household saving product that has helped many build wealth to fulfill their dreams. It has a well-proven track record of over 25 years, which is comparable to yesteryear's small saving schemes for the family. And many have seen wealth accumulation of over a decade that has brought conviction in the product. However, there are still those who are yet to understand the scientific methodology of planning wealth creation for the family through SIP. Many Myths revolve around investors' minds that disrupt their wealth accumulation to achieve their goals. And it is still to be understood that one product known as SIP is a solution for all needs of any family. Below you will find some facts relevant for investors who need the education to adapt SIP with maturity.
Bring Diversification investing in the SIP that is easy to manage:-
Many investors experiment to bring Diversification in SIP as they do with their Lump sum Investments. At the same time, there is nothing wrong with it if one can manage this efficiently. We have experienced that with many debits hitting your bank account during the month, one cannot manage cash flow efficiently. This unnecessary may lead to dishonour bank mandates towards the SIPs during the month and each default is being charged heavily by the banks. Paying Rs.200-300/ as bank charges for a SIP instalment of Rs.2000 takes away around 1% return in absolute terms. Moreover, in the desperation of enhancing returns, one keeps experimenting with new schemes that turn out to be a failure as one deviates from the core objective of discipline investment to achieve a long-term goal.