5 Myths & Misconceptions about SIP Investment

Published : 16 June 2023

#Myth 1: SIP is for small Investors

Fact: SIP is a good option for investors of all financial levels and investment objectives. The minimum investment amount to begin a SIP is Rs. 500 per month, and there is no maximum investment amount. 

#Myth 2: SIPs are risky with low returns

Fact: Even though markets are unpredictable, using a SIP can help you spread out your investment costs and lessen the risk of market volatility. 

#Myth 3: SIP keeps your money locked up for a long time.

Fact: SIP is a flexible investment option that allows investors to redeem their investments at any time.

#Myth 4: SIPs work best with equity mutual funds only.

Fact: SIPs are ideally suited for many other investment options, including debt funds, hybrid funds, and index funds, in addition to equity mutual funds.

#Myth 5: SIP requires a lot of Documentation

Fact: SIPs are a hassle-free investment option because they require little paperwork and documentation.