SIPs not only obviate the need to time the market and avoid panic during volatility, but also give good returns in the long run, says Tejas Shah.
Tejas Shah
Proprietor of Silicon One and Silicon Systems, AMFI-registered Mutual Fund Distributor since 2004, based in Vadodara.
Why was the return on my systematic investment plan (SIP) so low in the past year? Is opting for an SIP a good idea? These are the two questions that have been asked by several investors. An SIP is not an investing option; it is a tool to execute an investment strategy. If investors could perfectly time the market, they would buy only when the markets bottom out or sell when they are at a peak — but finding such a turning point is tough.
Consistent participation is the real advantage
An SIP enables consistent participation in the market, which is one of its biggest merits as a good execution strategy. Everything around you rises over time — income, expenses, prices — so it's a good idea to increase the SIP amount as well; it helps you reach your goal faster.
Mutual Funds offer innovative solutions to reach your financial goals. Come and visit Silicon One for more in-depth analysis and consultation. (This post also included a Gujarati passage encouraging parents to plan for their children's future through mutual funds and monthly investing, inviting readers to get in touch for more information: આપ અપના સંતાન ની કાળજી તો વ્યવસ્થિત રીતે લો છો. પરંતુ શું આપનું પ્લાનિંગ પુરતું છે? મ્યુચ્યુઅલ ફંડ આપને આપના બાળકના ભવિષ્ય માટે ઘણી રીતે મદદરૂપ થઇ શકે છે. વધુ માહિતી માટે અમારો સંપર્ક કરો.)
