Top 5 Myths about Investing In Systematic Investment Plan (SIP)

Here we will discuss some important myths that prevailed about the investment in Systematic Investment Plan.

Nowdays,a lot of people are showing interest in investing in open markets.

But there always a fear of losses,it may be due to the lack of knowledge.

There are several myths persisting in our society that won’t let a person to invest in these markets.

Have a glance on general myths propagating in society about Systematic Investment Plan.

First 

Some people think that investment in SIP is only for small investors.

It may starts from INR 500 but investment can go upto 1 lakh which depends on your goal.

Second 

Some people consider SIP as an invest product. But in real,it is not a product ,it is an Systematic Investment Plan in which you can invest in mutual funds at periodic time intervals.

Through SIP, you can choose that mutual fund in which you want to invest.

Third 

Don’t invest in SIP, when the market is at low or high.

If you invest your money in SIP for a long period of time ,then the ups and downs in market does not effect you.

Fourth 

You can’t change the amount invested in SIP.

SIP is a flexible investment.You can either decrease your investment or increase it .

It’s totally up to you and your financial conditions.

You can also increase or decrease the tenure of your investment.

However,there is a certain type of SIP called Flexible SIP which allows you to do this .

Fifth

If share market collides ,then don’t invest in SIP.

This is the most common myth.The reality is that you can buy maximum units when the market is low.

You can earn maximum profit by purchasing these units at low costs.

So,you should choose plan accordingly and continue to invest in SIP.

Sixth 

You should continue one SIP throughout years .

You should invest in SIP according to your salary .

If your salary increases,then you should increase your investment in SIP for maximum benefits.

Seventh 

SIP gives you guaranteed returns .
There is no guarantee to get returns from SIP.

Itis a market linked investment which fluctuates accordingly.

So,you should choose wisely and invest for long time to get desired returns.

Also Read – Know everything about Mutual Funds