Often, newbie investors remain confused when embarking on their investment journeys. Their inexperience, lack of knowledge and the virtual ocean of myths that plagues the world of investment make things all the more perplexing for such rookie investors. In fact, these prevalent investment myths often discourage newbie investors.
In this post, we’re going to dispel 5 common and prevalent myths about SIP investments.
So without further ado, let’s get started…
Fact: This is one of the most common myths that plague the world of SIP investments. A large number of investors think that SIP is an investment scheme, a fund or an investment avenue. The truth, however, is akin to this myth. SIP is actually a concept and not an investment scheme. In fact, it is an investment mode where investors can average the per unit price of their purchase. In addition, investors can invest in any kind of funds with SIP.
Fact: This is yet another popular myth around SIP investments. In actuality, SIP investments aren’t just for small investors. One can start SIP with any amount depending upon their future investment goals. It is important to remember that SIP works on the concept of rupee-cost averaging and is not limited to the amount of money invested. Newbie investors must always use free online SIP calculator to calculate returns on their SIP investments.
Fact: A large number of investors, especially the first-time investors, believe that stopping SIP investments in between may attract a hefty penalty. But this is not true. No charges or penalty is levied upon investors for stopping SIP in between. In order to stop a SIP, all an investor needs to do is to submit a duly signed written request.
Fact: Yet another myth that haunts the minds of newbie investors is that investment amount for SIP cannot be changed once agreed. This is also not true. Investors may change the SIP investment amount anytime as per their convenience, preference and budget. One can choose to deposit a larger amount when they have surplus amount and reduce the investment amount when they fall short of funds.
Fact: A large number of investors keep waiting for the ‘right time’ to start their SIP investments. Resultantly, they end up losing the opportunity to multiply and grow their wealth to meet their future financial goals. Successful SIP investments don’t really depend upon the time when an investor enters the market, but are dependent on the time period of the investment. Remember, experts suggest that staying invested for a longer time in order to ensure rewarding returns on investment. So, investors, looking to start SIP investments, must not keep waiting for the ‘right time’. Rather they must compare the best SIP in India, choose the options that suit their preferences and invest now to maximize their returns.
Wrapping it Up!
So these are the top 5 myths that discourage newbie investors, and at times even seasoned investors, to invest in SIP. Now that you know the facts, don’t just believe hearsay. Instead, start investing in SIP now and stay invested for a long-time to grow your wealth many times over.
Best of luck!
