Opinion | Systematic investment plans don’t reduce the risk of investing in equities
4 years, 9 months ago

Opinion | Systematic investment plans don’t reduce the risk of investing in equities

Live Mint  

When it comes to investing, there are no certainties. Thus, the risk of landing in the worst return range actually increases for SIP compared with lump sum for 15-year holding period. Investing through a monthly SIP, say, for a period of 10 years, will not be a substitute for making lump sum investment of an equivalent amount at the start of the 10-year period. If we reduce the holding period to five years, lump sum investing gave the worst returns 8% of the times compared to 0.7% times for SIP. Data shows that the longer the holding period, higher the probability that SIP returns will approximate lump sum returns.

Risk Period Five Years 10 Years Reduce Equities Sips Lump Holding Lump Sum Sip Returns Systematic Investment Lump Sum Returns Sum Investing  plans  sum  investing  sips  period  holding  opinion  lump  reduce  risk  equities  systematic  investment  sip  returns  dont

History of this topic

SIP vs Recurring Deposit: Which investment plan is more effective for wealth creation?
3 weeks, 1 day ago

SIP vs Recurring Deposit: Which investment plan is more effective for wealth creation?

India TV News  

SIP vs Recurring Deposit: Which investment plan is more effective for wealth creation? Let’s understand this with an example SIP Scenario: Investing Rs 10,000 per month in a mutual fund with an assumed 12 per cent annual return for 20 years can generate approximately Rs 99.9 lakh. On the other hand, SIPs involve market risk, but when invested consistently over …

SIP: pause and restart, or continue?
1 month ago

SIP: pause and restart, or continue?

The Hindu  

Some critics argue that systematic investment plans expose your investments to high risk when market valuations are rich. Also, the more frequently you try to time the market for multiple investments, the more you are likely to risk making suboptimal decisions. The tenure of an SIP on a passive equity fund must preferably match the time horizon for a life …

SIP inflows reach ₹26,400 crore: Do’s and don’ts for successful wealth building
1 month, 1 week ago

SIP inflows reach ₹26,400 crore: Do’s and don’ts for successful wealth building

Live Mint  

Systematic Investment Plans continue to maintain strong momentum as a favored investment strategy, with contributions reaching nearly ₹26,400 crore in January 2025, just shy of the record ₹26,459 crore in December 2024. Experts emphasize that while SIPs provide a disciplined approach to wealth creation, investors must follow best practices to optimize returns. Avoid chasing past performance: Selecting funds purely based …

Why Systematic Investment Plan Is the Best Investment Choice
1 month, 2 weeks ago

Why Systematic Investment Plan Is the Best Investment Choice

The Hindu  

Top 12 Reasons Why SIP Is the Best Way of Investment Though there has been a significant surge in the number of mutual fund investors in the last few years, many still wonder “Is SIP a good investment option?”. Let us delve deeper into some of the core reasons why a mutual fund SIP stands out among other investment options …

SIP vs lumpsum: Which is better option for investment in mutual funds
1 month, 3 weeks ago

SIP vs lumpsum: Which is better option for investment in mutual funds

India TV News  

SIP vs lumpsum: Mutual funds are one of the most popular choices among investors these days. Let's understand - Systematic Investment Plans or SIP - SIP is a very popular way of investing in mutual funds. - Financial experts believe that if you invest money in SIP for a long time, keep increasing the investment over time and also remain …

Mutual fund investment: Why smart investors would opt for SIPs in 2025?
2 months, 3 weeks ago

Mutual fund investment: Why smart investors would opt for SIPs in 2025?

Live Mint  

Mutual fund investment: As we enter 2025, the growing preference for Systematic Investment Plans in the Indian mutual fund industry continues to gain momentum. This strategy allows investors to remain focused on the long term and not influenced by short-term market dynamics," said Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited As for new and small investors, …

Retirement planning: Are you saving enough money? Tips on SIP, EPF, and NPS contributions
3 months ago

Retirement planning: Are you saving enough money? Tips on SIP, EPF, and NPS contributions

Live Mint  

Retirement planning is essential for ensuring financial security in the future. Industry experts suggest that a person can create a diversified, growth-oriented strategy by combining instruments like systematic investment plans with government-backed programs like the Employees' Provident Fund and the National Pension Scheme. Systematic investment plans “In today's world, it is very important to adopt an active style of retirement …

SIP Vs traditional saving: Which is better and secure financial option in India? EXPLAINED
3 months, 2 weeks ago

SIP Vs traditional saving: Which is better and secure financial option in India? EXPLAINED

India TV News  

SIP Vs traditional saving: When it comes to financial planning in India, choosing the right investment method is crucial for both growth and security. Systematic Investment Plans and traditional saving methods, such as Fixed Deposits, Recurring Deposits, and savings accounts, are two popular choices for investors. It has been seen that SIPs in equity mutual funds have delivered higher returns …

SIP Emerges as a Safe Investment Amidst Market Fluctuations | Paisa Live
Trending News
4 months, 1 week ago

SIP Emerges as a Safe Investment Amidst Market Fluctuations | Paisa Live

ABP News  

Amid fluctuations in the stock market, investments in Systematic Investment Plans are witnessing a rapid surge. For the first time in October, the monthly mutual fund SIP investments crossed the ₹25,000 crore mark. According to reports, the total amount of SIPs in October reached ₹25,323 crore, marking a significant milestone in the Indian mutual fund industry. SIPs allow investors to …

SIP vs Traditional Savings: Why Millennials Should Choose SIPs
7 months ago

SIP vs Traditional Savings: Why Millennials Should Choose SIPs

Hindustan Times  

As millennials take on new responsibilities and financial commitments, the choice between SIPs and traditional savings becomes more significant. Higher Growth Potential Equity Mutual Funds, which predominantly invest in equities and equity-related investments in the stock market, offer higher growth potential compared to traditional investment options. Conclusion To sum up, a mutual fund SIP is a compelling alternative to traditional …

SIP For Growth, SWP For Income; Which One Is Right For You? Know The Difference Here
7 months, 2 weeks ago

SIP For Growth, SWP For Income; Which One Is Right For You? Know The Difference Here

News 18  

SIP and SWP are two popular investment strategies offered by mutual fund houses. Systematic Investment Plan : Purpose: SIP is designed to help you invest money regularly in a mutual fund over a period of time. Systematic Withdrawal Plan : Purpose: SWP is designed to provide you with a regular cash flow from your mutual fund investment. Investor Profile: SIP …

Equity fund inflows fall 9% to ₹37,113 crore in July, SIP book at record high
7 months, 2 weeks ago

Equity fund inflows fall 9% to ₹37,113 crore in July, SIP book at record high

Hindustan Times  

Open-ended equity mutual fund inflows fell 8.61 per cent to ₹37,113.39 crore during July owing to a fall in investments in large-cap and mid-cap funds, as per the data released by the Association of Mutual Funds of India. Monthly gross systematic investment plan inflows hit a fresh record high of ₹ 23,332 crore during July. Earlier, inflows into equity mutual …

Unlocking Investment Potential: Mutual Funds, SIPs, and ELSS
9 months, 1 week ago

Unlocking Investment Potential: Mutual Funds, SIPs, and ELSS

The Quint  

Investing in mutual funds has become increasingly popular among individuals seeking to grow their wealth steadily over time. Systematic Investment Plans : Consistent Wealth Building SIPs offer investors the opportunity to invest a fixed amount regularly, typically monthly, in mutual funds. Equity Linked Savings Schemes : Tax-Efficient Wealth Creation ELSS are mutual funds that primarily invest in equity markets and …

What is SIP? All you need to know
1 year, 9 months ago

What is SIP? All you need to know

India Today  

In today's fast-paced world, where financial stability and wealth creation are paramount, SIP has gained considerable popularity. By investing smaller amounts at regular intervals, investors can harness the power of compounding and navigate market fluctuations more effectively. Unlike lump-sum investments, where a significant amount is invested at once, SIPs enable investors to invest smaller amounts at regular intervals, typically monthly. …

Systematic Withdrawal Plans: Here’s how you can make the most of it
2 years, 2 months ago

Systematic Withdrawal Plans: Here’s how you can make the most of it

Live Mint  

Investors parking their funds in mutual funds often look for investment options from where they may seek regular income. These plans help investors generate a steady stream of income from their investments and are best suited to those looking for regular cash flows either to meet their expenses or to reinvest the money received. Apart, investors regard SWPs as potentially …

Investment through SIP: How to invest with less risk?
2 years, 5 months ago

Investment through SIP: How to invest with less risk?

Firstpost  

Mutual funds can also be risky, but the risk is less in comparison to direct equity investment We all want to invest our money somewhere where our wealth constantly grows and remains safe. Investing in mutual funds can be a really good avenue for investors who want to increase their money while having low risk of loss. One can put …

Should you invest in debt funds through SIP?
2 years, 8 months ago

Should you invest in debt funds through SIP?

Live Mint  

Most of us know Systematic Investment Plan and its many benefits. If you don’t have a lumpsum amount to invest in a debt fund It is essential to remember that SIP is just a tool to invest in mutual funds every month. Investing in mutual funds through SIP allows investors to get more fund units when the market is down. …

5 SIP trends in the past 5 years identified by IDFC Mutual Fund
3 years, 9 months ago

5 SIP trends in the past 5 years identified by IDFC Mutual Fund

Live Mint  

A presentation by IDFC Mutual Fund to its distributors has outlined five key trends in Systematic Investment Plans over the past 5 years - FY2016-17 to FY 2020-21. SIPs steadily rising: The number of SIPs has grown to 3.73 crore in March 2021 from 1.35 crore in March 2017. Of the industry-wide SIP book of Rs9,182 crore in March 2021 …

Long-term investors should consider investing in gilt funds through SIPs
4 years, 6 months ago

Long-term investors should consider investing in gilt funds through SIPs

Live Mint  

Gilt funds posted stellar returns in the past one and a half years and their dream run may continue. Tactical investing not for everyone If an investor understands the interest rate cycles, macro factors and the overall landscape, he can take tactical calls in gilt funds. Investors who have recently added gilt funds in their portfolio for a short-term period …

SIP trend shows more investors seek to make direct bets in stocks
4 years, 8 months ago

SIP trend shows more investors seek to make direct bets in stocks

Live Mint  

A new stream of retail investors with high risk appetite is flocking to equities, often taking aggressive bets on penny stocks, in search of outsized returns at a time performances of other asset classes remain subdued because of the haze of uncertainty around covid-19. “We are seeing a surge in new demat accounts since March this year,” said Nikhil Kamath, …

Time for an investment review
4 years, 10 months ago

Time for an investment review

Hindustan Times  

As the economy gradually springs back into action, it’s time you took stock of your financial investments. Liquid mutual funds are a great option, as they offer safety, liquidity, and decent returns compared to a savings bank account. Invest in equity through mutual funds If your risk profile allows, it may be a good time to shift some investments to …

Opinion | SIPs are the perfect way to invest in the present tough market condition
4 years, 10 months ago

Opinion | SIPs are the perfect way to invest in the present tough market condition

Live Mint  

The Indian equity markets have had a terrible last month as they struggled to react to the developing spread of the covid-19 or novel coronavirus and the resultant global shutdown. We studied the Indian equity markets for the last 20 years—2000 to 2020—to see how SIP investors have fared in normal environments and how that experience changes after a sharp …

Opinion | When it comes to equity investing, long term is a lot longer than you think
4 years, 11 months ago

Opinion | When it comes to equity investing, long term is a lot longer than you think

Live Mint  

The covid-19 pandemic has resulted in one of the sharpest crashes in the Indian equity markets. For lump sum investments, the lowest holding period return would have been 5.8% during the 2008-09 global financial crisis. The average 15-year holding period return for both lump sum and SIP investments is close to 15%. If you repeat the same exercise for 10-year …

Stubborn mutual fund SIP flows take markets into uncharted territory
6 years, 1 month ago

Stubborn mutual fund SIP flows take markets into uncharted territory

Live Mint  

Historically, flows into equity mutual funds have followed a predictable pattern. Whenever the markets are doing well, mutual fun inflows pick up and whenever one-year returns fall into negative territory, flows dry up and even turn negative. However, net inflows into equity mutual funds remained fairly strong at ₹6,606 crore and ₹6,158 crore in the past two months. Mutual fund …

The curious effect of mutual fund SIPs on Sensex, Nifty
6 years, 6 months ago

The curious effect of mutual fund SIPs on Sensex, Nifty

Live Mint  

Retail flows into equity mutual funds have historically followed a predictable pattern. Whenever one-year returns are poor for successive months, flows dry up and there are even net outflows from equity mutual funds, as was witnessed in early 2014 and 2016. According to the head of research at a multinational brokerage, “Domestic fund managers, faced with increasing flows in a …

With a financial plan, we feel secure; we know money will be there if we need it
7 years, 1 month ago

With a financial plan, we feel secure; we know money will be there if we need it

Live Mint  

There are enough reports out there showing the higher returns that equity gives in the long run. “While the loan was of 20 years, I was able to remove this liability in 10 years by pre-paying lump sums,” said Collin. I had even tried to listen to some friends’ advice, but I thought someone else would be better,” said Collin. …

Give a fillip to your systematic investment plans
8 years, 6 months ago

Give a fillip to your systematic investment plans

Live Mint  

Systematic investment plans have become the preferred way of investing in mutual funds. The reverse is also true, i.e., a poorly performing fund will raise eyebrows, even though the overall portfolio performance is good. As markets tend to rise over the longer term, investing through SIPs implies that you are buying at higher and higher prices, thus reducing your return …

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