Stopping SIP is injurious to Wealth
Many Investors stop their SIP or discontinue their SIP when the Markets falls or during the bear phase of the market. When the Markets fall or when the markets are in the bear phase this is the good time to pump in more funds to the schemes and start a new SIP or top up their existing SIP's. This is the best time to accumulate more number of units so as we can create a long term wealth.
Below is the scenario when an investor who have started their sip in 2018 i.e. one year back and investors who have started their SIP in 2017 i.e. two years back see the negative returns on the paper only, if the investment is for long term. But for those investors who had invested 10 years, 15 Years, or 20 years back the returns the see at this point of time i.e. as on Feb 2019 is 12.7% to 21.32%.
But many of the direct investors who didn’t had an Financial Advisor had stopped their SIP and booked losses up to 50%. Investors who had started their SIP of Rs. 10,000 per month and continued from Feb 2000 to Sep 2001 i.e. for a period of 20 Months, they would have invested around Rs. 2,00,000 and the returns would have been negative.
If they had heeded the advise of their financial advisor they would have made huge returns. We at Finveda Wealth Management Pvt. Ltd. not only advise or clients but handhold them during the bad time when the markets are down or in the bear phase and give moral support and assure them that they will be getting good returns if they stay in this bad phase of the market or in the market down fall. We at Finveda believe that Fall is Temporary and Grown is permanent.
In the below scenario if the investor had continued his SIP for next 3 to 5 years see the kind of returns he would have made.
BEAR MARKETS ARE BEST TIME TO ACCUMULATE UNITS.
For example if an investor had an SIP of Rs. 10,000 in Reliance Grown fund for a period of 20 years see the kind of returns he would have made.
If the investor wants to create wealth and achieve their financial goals, it’s important to ignore short term volatility
Bad period is must for long term wealth creation through SIP
FINALLY SIP IS NOT RISKY IN LONG TERM
