If you are planning for a SIP investment plan, then this article is for you. Mutual funds are super popular with investors in the country. One of the easiest ways to get into mutual funds is through a Systematic Investment Plan (SIP). This approach is all about long-term investing, which really helps with compounding benefits. SIPs can help you average out the cost of buying mutual fund units, boosting your chances of scoring higher returns.
Some folks think that the specific date you invest in SIPs can impact your wealth growth. So, does it really matter if you pick the 7th or the 15th? There are plenty of theories floating around, but experts aren’t buying into any of them. A wealth advisor told Mint that it’s the overall time you spend investing that really counts for long-term wealth, not the exact timing of your investments.
Consistency is key
Preeti Zende, a SEBI-registered investment advisor and founder of Apna Dhan Financial Services, emphasizes that it’s the duration in the market that shapes your wealth over time, not just when you jump in. She advises investors to focus on making consistent investments and to think long-term for building wealth.
Research has been done to see if picking a specific investment date makes a difference, and the findings show it doesn’t really impact the fund. So, investors are encouraged to set up their SIP on any date that works for them. If you’re worried about blowing through your salary too quickly, consider starting your SIP in the first week of the month to invest before you spend.
Kick off your SIP right around the time you get your paycheck
Ravi Saraogi, co-founder of Samasthiti Advisors, mentioned that the timing of your SIP doesn’t really impact wealth creation. Even if past data seems to show a link, it’s just a coincidence. The best practice is to start your SIP as soon as you get your salary, so you can save before you start spending.
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