Systematic investment plans – How to make money?
Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves- Peter Lynch
During my initial days of investing, I felt that systematic investment plans are not very smart. However, over the years, I have realized that it is one of the most simple and powerful way to channelize your saving. The biggest reason why retail investors don’t trust equities is past bad experience. The past bad experience is mainly due to over-exuberance at the wrong time. People who invested lump-sum money can see very big losses if the market turns south. Such people, after burning their fingers once, are more reluctant to invest in equity market. If one invests gradually in equities, chances of large negative return is not eliminated but certainly reduced. However, investors looking to start their SIP journey should moderate lofty return expectations. Have a look at the video to understand why SIPs work
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The above content is just for information and should not be construed as an offer to buy or sell or recommendation. Contact your financial advisor for guidance on any investment related query.
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