When it comes to Investments, a most favoured and recommended vehicle for any investor is in Mutual funds, and when it comes to Mutual fund investing, Long Term is what each Advisor will advice, that also through Systematic Investment Plan or popularly known as S.I.P.
It is so common word now that many Investors search online, call their agents and ask for SIP Start and even Business Cafes, Business Places advertise like SIP and SHOP, or SIP and Burn ( by Health Products companies for calorie conscious people ) , SIP and CHAT ( Coffee Shops ) etc.
A Investor is often told and aware that when it comes to Mutual fund Investments, it should be for long term, and SIP is best way-Nothing Wrong.
Often what an Investor does not know is when to STOP SIP ( STOP S.I.P.)?
This is what puzzles a common man, an investor?
Below is simple checklist which will help you answer your above question , just write your answers to these questions .
A-Recollect where you started from, means your idea or reason for starting this SIP
B- Is that idea or reason met ?
C- What do you think of Market conditions? , it's future outlook ?
D-What is you current Asset Allocation standing? Is it as desired as per risk profile?
E- Where does your current Portfolio stand?does it mirror the one it is designed to be ?
F-Does it need any re-balancing ? ( One has to review portfolio at regular intervals )
G-What lead you of thinking to stop SIP ?
H-What will you do after stopping of SIP ?
I- Where will you park your surplus money, once your SIP will stop?
J-Is this a Sentiment related thought or decision?
Once you answer above questions yourself with definity, you can be through on your decision with clarity, and if you have doubts, please get in touch with your advisor.
If you search on this question through internet on www.google.com, www.moneycontrol.com, www.money.rediff.com, www.valueresearchonline.com, etc. most of the advice will be to not stopping SIP in adverse market conditions, infact most will advise to increase SIP amount ( regular contribution, could be daily, monthly, quarterly ), but not stop SIP. Some have also gone to an extent saying " Stopping SIP is a Bad Strategy ", & some has written on " Why you should not stop SIP ".
SURE YOU HAVE NO SECOND THOUGHT NOW, IF ANY PLEASE COMMENT.
Post a Comment