Investing through systematic investment plan is one of the most popular investing strategies which is adopted by investors all over the world. It not only helps investors build their nest egg over a period of time but also helps generate higher degree of returns. There are lot of myths which shroud this strategy and this blog is a sincere attempt towards decoding those myths.
INVESTING SUCCESS THROUGH SIP INVESTING
Investing through systematic investment plan is one of the most popular investing strategies which is adopted by investors all over the world. It not only helps investors build their nest egg over a period of time but also helps generate higher degree of returns.
There are lot of myths which shroud this strategy and this blog is a sincere attempt towards decoding those myths.
We are highlighting the work of research done by White Oak Capital Mutual Fund around what works best in systematic investing plan.
Many times, investors ask and brainstorm around which is the best date to start SIP.
Well to your surprise there is no one best day to have your SIP fixed. All day’s SIP investing yields almost identical results. The best SIP date is the date on which an investor can ensure money in his/her bank account so that the SIP does not get rejected.
Next question which is most sought after is which is the best frequency to have SIP. Is it Daily, Weekly or Monthly?
The key takeaway is starting a SIP early and running it for the long term is more important than what frequency one selects!
Investors are also very inquisitive about knowing that isn’t it better to time the purchase rather than letting SIP invest automatically.
It’s time in the market, not timing the market that matters more in wealth creation.
The segment which is most fruitful for long term investing is also debated upon. The fact which has been proven empirically is that mid-caps offer a very fertile ground for meeting the objective of long-term wealth creation.
In regards to ascertaining the most apt investment Horizon for running SIP as an investment strategy, investors need to understand that the highest probability of receiving decent Returns in SIP is 8 years where 100% probability has come up in empirical study where investors do not see any negative returns.
Please note that these data points are mere goal posts and not a straight jacket fit.
In case you wish to know more about our approach towards mutual funds and SIP investing, click on the link below.
https://www.simply3capital.com/services/mutual_funds
Also, if wish to start a SIP straight away, click on the Meeting Schedule Link below and our team of experts would reach out to you.
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