Everyone talks about the benefits of SIP s (systematic investment plans), but the critical component in a SIP is not selecting the best scheme / index etc. ?
It’s not even, for how long is the contribution period
The critical component is –
Have I CONTINUED WITH MY CONTRIBUTIONS into the scheme, even when it was underperforming either the benchmark or its peer group or when the index itself has gone down
Because, when it turnarounds even a little, the CAGR jump is noticeably large …(exceptions of some schemes continuing to underperform are always there)
Many Investors, Advisers, Distributors, free for all & not accountable article authors etc… keep moving their scheme choices quarter on quarter or year on year, but we rarely do this.
Not everyone can have this conviction of Continuing with the Contributions during tough periods & even fewer have the courage to execute it
Those who have, see the benefit today
Those who haven’t, keep changing the lanes
Intermittent fasting might help health, but, intermittent SIP contributions lead to no where, especially when we miss the most important periods
Yes you have narrated well I had a conviction and continued Franklin Bluechip sip and have seen sip return shooting up this is one example wants to quote?