SIPs support disciplined investing, but they are often described with claims they cannot deliver. Here are five distinctions worth understanding.
Myth 1: SIP means guaranteed returns
A SIP is only an investment method. The underlying mutual fund remains market-linked.
Myth 2: SIP eliminates market risk
Regular investing can spread purchase prices across market levels, but it cannot prevent losses.
Myth 3: Any SIP amount is enough
The amount should be linked to the future goal, the time available and reasonable assumptions.
Myth 4: The highest-return fund is the best SIP
Past returns do not show whether the fund’s strategy, portfolio and risk are suitable for you.
Educational information only
This article is general information and does not consider your income, liabilities, goals, risk profile or tax situation. Market-linked investments can lose value. Insurance is subject to policy terms.