SIP Is the blend justified, despite all the trouble?

[Prsagar]

The primary objective of investing in mutual funds is to achieve one's financial goals and create wealth as per one's
investment horizon, risk appetite and asset allocation technique.

Hence, one should invest in the mutual fund schemes offering free life cover only if the schemes have a track record ofbeating their benchmarks and peer funds in the past and have potential to continue to
do so in the future.

The availability of free life

cover should never influence the decision to invest in or redeem these funds.
Investors should also adequately enhance their life covers through regular term insurance plans at periodic intervals without factoring inthe free life cover provided by the bundled MF plus insurance products.

 

[Nova]

I think SIP is meant for those who don't have lumpsum. Like say you want to invest 50K and don't have money. In such case you can invest 5k for 10 months. And both should have same impact like the that for the 50k total amount. A lot of times what happens is that people don't want to pay attention to various SIP related issues. Like say when the market is high, then investing in lump sum plays a better role instead of the investing in the SIP. You tend to lose more if the market is good and you are going through the SIP route. In that case your better approach is the lumpsum of the investment.

I have seen some of the users making the investment through the SIP and they tend to perform slow but eventually have the same impact if the market is moderate or low. Most of the SIP don't work well in market top to bottom phase. That is what my experience so far with the SIP in investment form.