Debunking SIP Myths: 5 Misconceptions to Avoid for Smarter Investing
Business
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News18•28-01-2026, 17:44
Debunking SIP Myths: 5 Misconceptions to Avoid for Smarter Investing
- •SIPs are a popular way to invest in mutual funds, but common misconceptions can hinder long-term returns.
- •SIPs do not guarantee instant high returns; consistent investment over 7-15 years, fund performance, and proper selection are crucial.
- •Avoid investing in too many popular funds; instead, choose 3-5 quality funds from different categories aligned with your financial goals.
- •SIPs are flexible and can be paused, stopped, or modified based on life changes or fund underperformance.
- •Do not stop SIPs during market downturns; lower NAVs allow buying more units, reducing average cost and boosting long-term gains.
Why It Matters: Understand SIPs as a disciplined investment facility, not a guaranteed profit product, for effective wealth creation.
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