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Posted on 9/20/2019 6:30:00 PM

Let us say, you as an individual are looking to buy a house. You may have set a budget for it and you may have zeroed in on a great property. If we were to ask you – What would be the right time to buy this house? Your reply would be – right now, because it seems as a good investment for your future.

Similar is the case with SIPs, they are an investment solution that can help you keep adding to your earnings with an aim of generating good returns or building your future wealth over a period of time. 

Many a times, the general public may find themselves hesitating before investing into mutual funds through a SIP. Three primary excuses come to the fore when Systematic Investment Plans are the topic of discussion. These are:

  1. It does not seem like a right time to invest now.
  2. I might stand to not get enough money back on my investment.
  3. Right now, the market is not looking so good due to certain domestic (government policies) and international affairs around me.

Well, these reasons may be quite relevant to you but at the end of the day, these seem to be excuses. And more importantly, they might be stopping you from achieving your long-term goals. All you have to remember is one thing – your long-term goals can be met when you stay invested for longer. And, that, it bodes well in the longer run because on an average you can get good returns, compared to a scenario where you don’t make any investments.

Here are a few reasons that turn the above excuses into opportunities for investment:

  1. The valuations of equities are most likely to fluctuate as time progresses, SIPs are a smart way to counter this fluctuation by being consistent & averaging your cost of investment over time.
  2. Markets are volatile in nature, whereby it may so happen that no time would seem like the right one. However, investing through SIPs can help you add to your portfolio in a more disciplined manner.
  3. While it is true that the flow of equities may not be streamlined, it is also true that investing through the consistency of SIPs can help you buy more when the markets fall & vice versa.
  4. External factors are bound to influence how the markets function. However, investments through SIPs are fluid and flexible enough and can help you earn good returns if you stay invested for the long term.

So, use these reasons to counter your excuses and turn them into opportunities to invest in SIPs for your long-term goals.

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This article should not be considered as 'investment advice'. We request the Reader to make informed investment decisions and consult their financial advisors to determine the financial implications with respect to investing in Mutual Funds.

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