Systematic Investment Plan Good Or Bad ?

What is the best systematic investment plan?

Systematic Investment Plans are not good. Many  of you will say, Anant SIPs are your favorite mode of investment. Why are you against SIP? Because every investment mode has its IFs and BUTs. We must decide with everything in mind. Is this mode good for me or not? We talk in detail in this post.

Is a systematic investment plan a good idea?

Nowadays, the Market is at its ATH. All new investors that are coming, They are being shown the last 1-3 years of SIP return. Even in the last 5 years. Since the market has rallied in the last 1 year, all returns are attractive. All investors are thinking that they have missed a big opportunity.

People are made to do new SIPs by showing that opportunity. In this post with data, with  fact, with psychological reasons, with each point in mind,  we'll understand how to use SIP as an  investment mode.

Is SIP better than FD?

Which is one of the best investment modes. But it has its IFs and BUTs. How should we use it? Which qualities are required if we want to earn money by SIP. We'll discuss this in detail.

And many IFs and BUTs, that  you had never heard before. Some pointers that every SIP investor must understand, know, and identify. To make sure he understands them is very important.

Today's post will be very important to every mutual fund and SIP investor.

Which SIP plan is best in India?

Suppose you  did a SIP of Rs 10,000. Your SIP will grow at a flat  12% rate. Think about it. The first example is of your SIP of  Rs 10,000 which will be at the rate of 12%. Before that, remember that the height of the bamboo tree is  the return of wealth creation.

Roots are very important  for the first 5 years. These are going to your units. In the first  example, you have to invest Rs 10,000 pm Here, you'll get a flat return of 12%. When you invested Rs 10,000 pm for  6 years. It will almost double by then.

If your mutual fund's value was Rs 10. It will be Rs 20 with the data you have. If you invested for 6 years  with flat returns of 12%. Your emotion is completely free. You don't need to worry. Emotionally it's good but actually, it's not good.

Because You have invested for 6  years but its price is increasing. Your roots are now less deep. You are getting fewer units with time. When you'll calculate your  total units after 6 years.

You'll have 52,488 units  in this first case. Let's talk about the 2nd case. In life, you'll mostly get this case. What will be in the 2nd case? Your invested MF has a NAV of Rs 10. For the first 5 years, your NAV  remains the same. It just fluctuates.In last 6 months or 1 year,  actual bounce comes.