Timing the markets - No worries with SIP
It might be tempting to try to time the market, but the illustration above shows it's just not worth it to play that game. Studies have shown that a regular investor makes more money than the one who times the market. The best way to make such investments is through an SIP or Systematic Investment Plan which can help reduce the risk of timing the market by averaging out benefits.
Investing in equities through mutual fund is one of the feasible ways to build a solid corpus. And since mutual funds are managed by experienced fund managers, one does not have to bother too much about what choices to make and where to invest.
Over a period of time, returns from an SIP in mutual funds will comfortably exceed inflation. In fact, an SIP-based approach can be considered as a good way to beat volatility as SIP is usually low-risk when evaluated over a long period of time. In the end, remember that building wealth is a long-term commitment, and to do so, it is better to stick to an SIP rather than trying to time out the markets.
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Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. This document provides general information on performance; financial planning and/or comparisons made are only for illustration purposes. The data/information used/disclosed in this document is only for information purposes and not guaranteeing / indicating any returns. Investments in MFs and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing. Recipient should also understand that any reference to the indices/ sectors/ securities/ schemes etc. in the document is only for illustration purpose and should not be considered as recommendation(s) from the author or L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates. Recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.