Is SIP a good option for short term investor in mutual fund?

#2
Hello!! Yes, it a good option for any individual looking for short term growth. I have been investing in sip for a quite long time. In my opinion reliance mutual fund offers good schemes under sip investment especially for people looking to start with a smaller amount. You can check out their website to find the break-up of the each schemes offered to individual.
 

dineshN

Well-Known Member
#4
After the global meltdown 2008, investments dried up drastically. Fund houses won't run without fresh inflow of money. SIP is a way-out for that. It is only in the interest of fund houses and not investors.
 
#5
After the global meltdown 2008, investments dried up drastically. Fund houses won't run without fresh inflow of money. SIP is a way-out for that. It is only in the interest of fund houses and not investors.
Still, I wouldn't discount the value creation that can be had through SIPs. It maybe good for fund houses so that they have a constant inflow of money, but it is good for investors too as volatility and market timing are virtually eliminated.

If one doesn't want to invest in mutual funds, one can always do an SIP in ETFs of benchmark indices. It is a lot cheaper than mutual funds.
 

dineshN

Well-Known Member
#6
I may be wrong but my experience with SIP is not good.
If you eliminate the volatility from your investments, the returns are greately compromised.
At best, SIP only preserves your capital (inflation eats up your returns) and help running MF houses.
 
#7
I may be wrong but my experience with SIP is not good.
If you eliminate the volatility from your investments, the returns are greately compromised.
At best, SIP only preserves your capital (inflation eats up your returns) and help running MF houses.
How long is your experience? SIPs won't create much value (certainly not in today's markets) in a short time period, but then again, directly investing in equity won't either (unless you are lucky). I would wait for at least 6 - 8 years of regular SIPs before judging results.

You are right about returns getting compromised because of SIPs, but that is the price one pays for reducing risk. I'm okay with it! Not looking for the next multibagger! The returns on the Indian index is fine for me! :)