Be Patient with Your SIPs
Start Your SIP in Mutual Funds.
SIP in Equity Mutual Funds provides you a lot of benefits in long run, these benefits are only rewarded to those who are patient & faithful SIP investors.
Let’s understand more about how it rewards its patient & faithful investors with a story of two friends Kartik & Rohit who are watching a Test Cricket Match together.
Test Cricket Match was going on between India & Australia, the batsman was not performing so Rohit shouted, “Why is he not scoring in boundaries? Here he goes… Another ball defended.”
Rohit continued… “He’s scoring just like my SIPs That’s why I paused all my investments.”
To which Kartik replied, “Relax, it’s just the first day of the test. You’re right though. Investing via SIPs in Equity Mutual Funds is just like test cricket.”
Kartik continues… “But this means you should keep investing in your SIPs. You should treat them like a test match…where every run counts, irrespective of good or bad balls.”
Kartik then again related it to SIP for Rohit and said… “If you patiently stay invested in both good and bad markets, you will eventually benefit not only from the habit of investing regularly but also from rupee cost averaging.”
Kartik continued… “Thus you will accumulate a healthy corpus over time and enjoy the benefits of the power of compounding. So don’t worry about short-term performance.”
In meantime, that same player at whom Rohit was shouting, completed his CENTURY! Rohit was shocked to see that even without hitting that many boundaries he completed his century which was commendable.
As the batsman achieved his goal even the conditions were bad, so does the SIP do even when markets are bad – they help you achieve your goals.
Rohit then accepted and said, “You’re right Kartik! Form is temporary, Class is Permanent!”
So, even if your Mutual Fund SIPs are not performing as per your expectations in the short run, you should not get disappointed and stop it, in fact, you should stay patient and focus on your goals. However, regular scheme review is always required.
Do You Know? SIP Investment of Rs.10,000 per month regularly invested for 25 years earning 12% per annum will generate a wealth of Rs 1.70 Crores! Click here to Start Your SIP in our Top 5 Mutual Funds!
Disclaimer: Mutual Fund Investments are subject to market risks. Read all scheme related documents carefully before investing. Past Performance may or may not sustain in the future.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
