Truth Speaker Mitra (@SubhajitMitra) 205 Followers 07 Oct

Mutual Funds 747 3

SIP is not always a win-win situation— Marketing buzz vs Reality

A systematic investment plan is not a simple investment plan!

Is it really good, or are you under a marketing hoax? Before making a plan to invest, it's good to know the disadvantages of mutual funds' darling product.

If you're ready to fill your mug with drop-by-drop water, then SIP is a fantastic option. It is also known for sluggish growth. If you can afford a long-term investment, avoid SIP's quarter or yearly performance. It can exceed the actual return with a compounded bumpy ride for a 10-year term.

Investors are locked with a fixed amount of investment; you can't change it after investment, whether the market is bullish or bearish. You can't hold or withdraw your investment decision to cope with your financial condition. However, there is a hack; you can withdraw money from your auto-debited account. Your bank can slap a minor fine for payment failure.

People without a fixed cash flow can get hiccups. 

You must have sound knowledge about the financial product SIP so that the exit route is clear to you with all of its terms and conditions. Sometimes Fixed deposits get good returns yearly than SIP. Outstanding research provides good returns.


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