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.
