Any activity that you engage in is sure to invite a couple of ups and downs. The same holds true with respect to the many investment products, market scenarios, insights of professional fund managers and so on and so forth. Just like you feel extremely delighted after making an investment gain, you need to be a sport and take losses with a pinch of salt. It is only when you go wrong with your investment decisions will you be in a position to play wise in the days to come. However, the moral of the story still remains that you need to follow a certain level of discipline in every investment decision that you take. So the next time you find the market to be a little volatile, don’t withdraw your SIP.
Listen to your heart:
The moment you decide to invest in mutual funds, you get well aware of the fact that the road is going to be a little rocky at times. When you already know about this, then why is that sudden fluctuations tend to disturb your mental peace and ability to think smart. At times, most of what you hear is unhealthy and untrue news. So, instead of getting bogged down by such information, you need to have absolute clarity in your mind. You need to remind yourself that you have stepped onto the SIP platform solely with the objective of making returns in the long run and thus short time volatility should not make you question your decisions.
Follow a Pattern:
SIP stands for Systematic Investment Plans and just like the name suggests, this type of investment methodology requires you to follow the same investment pattern over spread out time durations. Based on your individual preference, you can choose from among weekly, quarterly or monthly investment brackets. In this kind of investment plan, you mainly play a spectator. This is because there is no direct participation of the investor involved. Units held by you in mutual funds keep increasing on the basis of the instructions given by you to debit a particular sum from your bank account and direct the same to SIP investments.
Is Income a Pre Criterion?
One of the main reasons as to why people are hesitant to invest in SIPs is because they assume their income to be very less. This is particularly true in case of all those individuals, who have just begun their professional careers. They feel that the net income drawn by them is mostly spent towards taking care of their fixed expenditures. Moreover, they are of the opinion that whatever amount is then left behind is too little to make a SIP investment. However, this is far from true. Irrespective of the quantity of monetary resources in hand, you can still consider investing in SIPs. Hence, income isn’t really a major decisive factor here.
Play Slow yet Smart:
Any new activity that you decide to take a plunge in is likely to surprise and shock you at least in the first few months. The same ideology holds true in case of SIP investment as well. This is exactly why, it is crucial for you to take baby steps in the beginning. The best way out is to not direct a major chunk of your resources to SIP investments. You can instead invest in smaller portions. This will not just secure you against unforeseen conditions, but will also help you to taste this unique experience in bits and pieces. Over time you will yourself turn out into a SIP expert.
The reason, why most of us choose to make investments is merely for the sake of making some easy returns. However, in the process, greed takes on to us and we stop thinking logically. On good days, we sail through smoothly, but on days that are not all that good, we suffer heavily from restlessness and anxiety. The scenario is no different in case of SIP investments. If you wish to not find yourself in such a situation, then staying miles away from undue greed is just the right thing to do.
Not everyone is competent at making the right investment decisions and if you feel that you need help to plan your finances at a pocket friendly cost then you should visit Findvise or download the app. A professionally managed robo advisory platform will analyze your aspirations and finances in most scientific way and help you to allocate your savings in the most gainful manner and you will be able to make the most of your investment.