India is going thru one of the most uncertain times; as national elections are due in a year’s time to decide on current incumbent or the new stakeholders, US trade war has intensified with Trumps unrelenting signature, Crude surge is unstoppable with OPEC targeting USD 100 per barrel, and many more related events.
All these events are resulting into stock markets behaving badly. This is where one gets to see a difference between the Matured & Panic state of mind.
SIP is a monthly commitment on an individual’s saving, to be invested in funds based on risk, objective & the asset allocation model. One of the key feature of a SIP is the Price Averaging, which means, one is entering or buying Mutual Funds at various price points. These price points can be low, as-well-as high, based on the stock market swings. In-short, one gets to invest at low points in the market, as-well-as high points in the market.
We are today going thru a phase, where we are witnessing such low points, and this may continue for some time to come. But it’s a big opportunity in hand, to buy at low price and to bring the overall cost down (total invested value), by the Rule of Averaging. Therefore, whenever the market is low, even though overall returns will be lower (earlier purchase), but it’ll be the best time to enter market (buy), or even TOP-UP on SIP (increase).
You invest in equity SIP, keeping in mind a long-term horizon (at least 5 years+). Equity market has always given good returns, whenever the holding period is long, with “Matured state of mind”.
All that’s required; is to keep in touch with your advisor, such that you have someone who you can reason & talk, on your portfolio or on any financial query.