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Fri, December 13, 2024

Personal Finance: Why the angst against SIP is futile


Published on 2024-12-13 01:20:56 - moneycontrol.com
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  • Recently, there have been a couple of statements on social media calling the Systematic Investment Plans (SIP) a scam.

The article from Moneycontrol discusses the skepticism surrounding Systematic Investment Plans (SIPs) in India, particularly highlighting why such doubts are largely unfounded. It explains that while SIPs have been criticized for not delivering expected returns due to market volatility and high valuations, the long-term benefits of SIPs remain compelling. The piece argues that SIPs promote disciplined investing, mitigate the impact of market timing, and benefit from rupee cost averaging, where investors buy more units when prices are low and fewer when prices are high. It also addresses concerns about high valuations by suggesting that over long periods, these valuations tend to normalize, and SIPs can still yield positive returns. The article concludes that despite short-term fluctuations, SIPs are a sound strategy for wealth creation over the long term, especially when combined with a diversified investment approach.

Read the Full moneycontrol.com Article at:
[ https://www.moneycontrol.com/news/business/markets/personal-finance-why-the-angst-against-sip-is-futile-12889189.html ]

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