Does SIP actually work? This was the query posted by a reader on my blog. He further added to his query stating that. “if SIP is effective, then why don’t all people invest in mutual funds through SIPs.” I can understand his doubt. Whenever we hear about big investors like Warren Buffett, Rakesh Jhunjhunwala, Ramesh…
Systematic Investment Plan (SIP), stands as a cornerstone strategy for wealth creation and financial stability. For nearly two decades, one steadfast investor embarked on a remarkable journey through the landscape of SIPs, refining strategies, embracing volatility, and reaping the rewards of consistent, disciplined investment. Let’s learn from the two decades of SIP investments. The purpose…
Let’s unlock the wealth for ourselves. There exists a universal dream among people of building wealth and securing a brighter financial future. But we often hear the cry of those who say they lack the savings required to venture into the world of investments. Hence, they procrastinate, being convinced that the doors to financial prosperity…
The purpose of this article is to compare SIP vs Lumpsum investment as two distinct investing strategies. Investors often face the dilemma of whether to choose SIP or lumpsum investment. Both methods have their pros and cons. This article will help you understand which one is suitable for you. For quick answers, read the FAQs….
Why I’m blogging about this topic? SIP is an investment method that most people use to invest gradually and consistently. It is a very practical method to accumulate wealth over time. But there is a way to make the SIPs even more effective. Step-up SIP is the way to do it. I feel the conventional…
The prices of even the best stocks fall when the whole stock market is on a falling spree. In such times, investors with a long-term mindset buy such stocks. But how to invest in a high market? The answer to this question is not simple. Why? Because a simple solution will be to do nothing…
We will learn about the importance of time in the market versus timing the market using index investing. The same theory will apply to a portfolio of stocks, a basket of fundamentally strong stocks. It only reiterates the significance of staying invested for a very long term, with examples. What does it mean by timing…
Allow me to tell you a story about why I’m writing an article on the topic of mutual fund charges. Recently, I met a worried senior citizen (my uncle). He was upset about the low returns his mutual fund (SIP) is yielding. He was so upset that he was even calling it a scam. Uncle even shared his…
The compound interest formula can teach us the basics of long term investing. We heard about simple interest and compound interest way back in our school days (Class 8th). But in those days, we never realized that these formulas had so much learning for us I feel, had our teachers exemplified us more about compounding returns in those days…
Systematic Transfer Plan (STP) is a useful tool like Systematic Investment Plan (SIP). SIP has become a synonym for mutual fund investing. People prefer buying mutual fund units through SIP route. Hence these days, it is not necessary to explain the meaning and purpose of SIP to people. But the concept of Systematic Transfer Plan (STP)…
You can check my mutual fund calculator here. It has been coded to help beginners to estimate how much to invest for a financial goal. Lumpsum Investment (Rs.) Monthly Contributions (Rs.) Rate of Return (% p.a.) Investment Horizon (Years) Final Lumpsum Amount (Rs.Lakhs) Fianl SIP Amount (Rs.Lakhs) Total Amount (Rs.Lakhs) But why we need such…
I have already written an article on Systematic Investment Plan (SIP). So why a separate post on SIP return calculator? Writing a separate post was necessary to explain a very important point about returns from SIP. To explain the concept of returns from SIP, it was also obvious to code a SIP return calculator. You can use…
