Extremely Important points to remember while doing SIP

  1. Link each SIP to a particular goal and continue it, till the goal is achieved.
  2. Do not get disturbed by market volatility. You must continue the SIP. It only acts in your favor, as you buy more units with the same amount.
  3. Ideally, fund managers should be given at least 3 years to perform. In the period of 3 years if it continues to under-perform its BENCHMARK INDEX then investor may consider changing the fund.
  4. Do not stop your SIP if its shows the negative returns in less than two-year time.
  5. With rise in salary, top-up your SIP with the same proportion. As the income rises your investment should also rise proportionately.
  6. If possible invest more when the, market if falling.
  7. Just make sure your SIP should not STOP in whatever be the circumstance.
  8. Magic lies in compounding. Here is an example.
MONTHLY INVESTMENT FOR A PERIOD OF 5 YEARS 10 YEARS 15 YEARS 20 YEARS 30 YEARS
10000 8.11 lacs 22.4 lacs 47.9 lacs 91 lacs 3 CRORE

 

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