9/11/2023 0 Comments Expert secrets pdfIf investors can treat the volatility as their friend and remain invested, they will bring you the desired outcomes later.”Ģ.Beyond a certain size, SIPs are not agileĪ SIP is usually a good tool to mitigate market volatility. in, observes, “Most investors quit SIPs if the returns in the initial years are not encouraging, but this is the time when it is averaging on lows so that when the market turns later, the returns seem magnified.” Prateek Pant, Chief Business Officer, WhiteOak Capital AMC, remarks, “The markets are never linear. This might be just the base it needs to create serious wealth. So, the next time your SIP falters in its early years, give it the benefit of a longer horizon. Comparatively, whenever the average SIP return exceeded 8% in its first five years, the final SIP return after ten years averaged 14.9%. For the period between August 1996 and June 2023, whenever the average SIP return in the S&P BSE Sensex in its initial five years was 8% or lesser, the return at the end of 10 years averaged a healthy 18.7%. According to a historical study by WhiteOak Capital AMC, a SIP that has fetched low returns in the first five years has delivered more favourable returns over ten years. If you persist with the SIP, this phase is likely to set you up for a healthy outcome later. If this persists for the first 2-3 years and you don’t see any return from the SIP, what are you likely to do? Won’t you be tempted to throw in the towel? Given the volatility in equities, there will be times when the market will trend lower or sideways. How the market behaves in this phase is not so critical for the investing outcome, but how you behave in response to the market’s vagaries will make all the difference. The early years of a SIP can be a real test for your investing discipline. Here, we outline certain critical attributes of a typical SIP throughout its life to help you better understand and navigate the path you are on. If you set your expectations right, it will help maintain your investing resolve and allow SIPs the time they need to yield the desired outcome. The path to success with SIPs is not linear. As the SIP culture is embraced by investors, it is crucial that they know what to expect when they take this journey. While it is common knowledge that long-term investment in mutual funds through SIPs helps navigate the market ups and downs, there are other facets of SIPs that are still not fully realised or appreciated. Clearly, investors are now sold on the benefits of SIP discipline. The monthly SIP inflows crossed Rs.14,000 crore for the second consecutive month. As per the data from the Association of Mutual Funds in India, new SIP registrations for the month of June hit a record high of 27.8 lakh, taking the total SIP accounts to 6.7 crore. Retail investors with small ticket sizes continue to plough big money into mutual funds in auto-pilot mode. OL19718645W Page_number_confidence 87.83 Pages 306 Partner Innodata Pdf_module_version 0.0.17 Ppi 360 Rcs_key 24143 Republisher_date 20220104223753 Republisher_operator Republisher_time 369 Scandate 20211228105726 Scanner Scanningcenter cebu Scribe3_search_catalog isbn Scribe3_search_id 9781683504580 Tts_version 4.The humble SIP (systematic investment plan) is turning into a behemoth. Access-restricted-item true Addeddate 12:50:22 Associated-names Kiyosaki, Robert T., 1947- writer of foreword Bookplateleaf 0002 Boxid IA40321412 Camera USB PTP Class Camera Collection_set printdisabled Foldoutcount 0 Identifier expertsecretsund0000brun Identifier-ark ark:/13960/s2f2gtvqnwk Invoice 1652 Isbn 9781683504580ġ683504585 Lccn 2017902207 Ocr tesseract 5.0.0-1-g862e Ocr_detected_lang en Ocr_detected_lang_conf 1.0000 Ocr_detected_script Latin Ocr_detected_script_conf 0.9253 Ocr_module_version 0.0.14 Ocr_parameters -l eng Old_pallet IA-NS-1200325 Openlibrary_edition
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