By Rajni Pandey | July 16, 2024
Reality: SIPs benefit both small and large investors by spreading investment over time, reducing market volatility risk.
Myth 1: SIPs Are Only for Small Investors
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Reality: SIPs don’t guarantee returns. They are subject to market risks, but they offer rupee cost averaging to mitigate volatility.
Myth 2: SIPs Guarantee Returns
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Reality: SIPs can invest in various mutual funds, including debt and hybrid funds, suiting different risk tolerances and goals.
Myth 3: SIPs Only Invest in Equity Funds
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Reality: SIPs are flexible. You can pause or stop them anytime without penalties, though long-term investing maximizes benefits.
Myth 4: SIPs Require Long-Term Commitment
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Reality: SIPs are cost-effective with no additional fees, making them an affordable option for regular investments.
Myth 5: SIPs Are Expensive
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Reality: SIPs work well in bear markets by buying more units at lower prices, averaging the purchase cost over time.
Myth 6: SIPs Are Ineffective in Bear Markets
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Reality: SIPs suit all ages, helping meet various financial goals like retirement or education through disciplined investing.
Myth 7: SIPs Are Suitable Only for Young Investors
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Reality: A Demat account isn’t necessary. You can invest directly through mutual fund companies or online platforms.
Myth 8: You Need to Have a Demat Account for SIPs
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Reality: SIPs are flexible, allowing you to adjust the investment amount, frequency, or switch funds as needed.
Myth 9: SIPs Cannot Be Modified
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