Understand the SIP Better

Understand the SIP Better

I have written several articles about SIP up to now. Here is a Compendium of all those Articles. You will find it very useful.

- Systematic Investment Plan (SIP)

- Systematic Investment Plan Myths (SIP)

- Daily Systematic Investment Plan (Daily SIP)

- How Does a Daily SIP Work?

Now, Let us reveal another myth about SIPs. People think about SIPs ate 2 Extremes.

01) One group of people think that rather than Investing in SIP manner, if you invest Lump-sum when the market is down, You will get better returns.

02) Another group of people believe that, You can never lose money in SIP

Unfortunately, both of the above are the Myths. The main purpose behind SIP is not Scientific or Mathematical. But it’s Psychological. Investment is a 10% mind game and 90% a Behaviour Game. Actually Investment is not risky but the Investor is risky. The Basic purpose behind SIP is that, when the market is Up, you will end up with buying less number of shares (Units) and the market is down, You will be end up with buying more number of shares (Units). But unfortunately, Most of the people do exactly reverse means when the market is Down, they run away and when the market is UP, they rush to buy.

So SIP is basically to implement the habit of regular and disciplined approach towards investing in your life.

SIP is designed to make you a Good Boy (or a Girl)…!!!

Making money (well, I am talking about building Wealth) is just the 10% of mind game and 90% is the Behaviour change. And SIP is designed to focus on that 90% (Behaviour) of the money game which is required to make you Rich….!!!!