You cannot go wrong with mutual fund SIPs. Can you? Just start a SIP and forget about it. Good returns are guaranteed. Anecdotes are fine. What does the data tell us? Does SIP guarantee good returns? I consider 3-year, 5-year, and 7-year SIP returns on Nifty 50 TRI for the last 20 years. I have considered a large-cap index (Nifty 50 TRI). A holistic exercise … [Read more...] about Does Mutual Fund SIP guarantee good returns?
Many of us spend a lot of time finding the “Best Mutual Fund” to start a Systematic investment plan (SIP) in. Very little time is devoted to review/re-balancing of the existing portfolio. Is that the correct approach? By the way, there is nothing wrong with trying to find out the best mutual fund to invest in. That the task, in itself, is not so simple, is a different matter … [Read more...] about What do you worry more about? Your existing corpus or the next SIP installment?
If you think I came up with this beautiful one-line liner, you are wrong. I do not have creative brains to come up with something so simple and yet so powerful. In a series of advertisements in a leading business newspaper, Franklin Templeton, a leading asset management company, stressed that Systematic Investment Plan (SIP) is like a good EMI. I see a lot of merit in the … [Read more...] about SIP is like a good EMI
The reason is quite simple. Because most of us invest through Systematic Investment Plans (SIP). Not many of us invest in equity mutual funds in lump sum. This is not to say lump sum investing in mutual funds is a bad idea. But it is quite risky for sure. Only very smart investors can pull it off consistently. When you visit various mutual funds aggregator and analysis … [Read more...] about Focus on SIP returns
Almost everyone espouses the virtues of long term investing. The voice grows louder when the markets are crashing. You would have heard many examples of great companies go up a few hundred times in 10-20 years but how many investors are able to ride the entire upswing. Very few, I am sure. This is not it. A few companies that got beaten down in during the last bear market have … [Read more...] about How SIPs make long term investing easier?