Monday, November 2, 2015

Systematic Investment Plan (SIP) myths (ME)

Most people have an extreme view on SIP. Some consider it as a heavenly safe ‘instrument’ while some consider it as a volcano. Rarely people have moderate views on it.
Now, what does the above sentence really mean? Very few people would have noticed the singe inverted comma around the word instrument in above line. Those who have understood the reason behind this comma can close the browser and read something else. Rest can continue reading further.

First, let us be clear that SIP is not an instrument. It is only a method of investment. Technical guys – This is similar to the statement: Agile is not a technology, it is simply a methodology.
For those who simply parrot the word SIP, here is the long form: Systematic Investment Plan. Did you notice that there is absolutely no mention of ‘investment in what’? This re-enforces that this is just a methodology of investment and not an actual investment.+
Let us take a simple example.....

Click here to read the full article published first in www.MarketExpress.in - India's First Global Insights & Analysis Sharing Platform



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