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Parents are the first teachers of their kids. So they can be the best teachers to give their kids financial tips. Ever heard your parents say you need to stop overspending? Parenting has never been easy. You as a parent might have learnt the importance of financial planning late in life. You would definitely not want your kid to go through the same. If you are a parent you need to do the real talk.
Talking investing related matter doesn’t mean you teach ELSS to a toddler. According to the age of your kid, start having suitable financial talks with them. A few small steps with time can make a difference. As they grow older, they will take charge of their own investments. Let’s find out how you can begin.
 
Financial tips: Investment today, returns tomorrow:
Get a puzzle and ask your kid to solve it. In the end when your kid solves the puzzle, appreciate her. Tell her “You actually solved it using your efforts and time”. Or bake a bread with your kid. Preparing the dough, asking your kid to knead the dough and then letting it sit to rise overnight takes time. When the bread is finally ready, you can introduce her the concept of investor. This is where you can make her realize how she put efforts over time to get an end result. 
 
Different forms of investment:
Making kids understand the concept of investing can be tough. But, a simple example can fold their mindset. Your kid will understand the importance of investing through financial tips.
Make them relate it to something real. You may take a few seeds and plant in the pot with your kid. Discuss about the time the plant needs to develop and how you have to timely “invest” water in it. Then you can explain how in the end it will yield a ripe lemon.
 
These are a few ways of inculcating the concept of investing in your kids. Always, remember that as a parent you should not wait for the “right time”. The earlier you start sharing financing tips, the better it will be for your kid.
Talking finances can also help shape your child’s mentality towards life. You can begin looking for the best investment plans for your child. They will know the value of money. Also, they will value savings rather than unnecessary spending. Imagine the corpus they will be able to accumulate in their investment journey.
The illustrations above can  help you ascertain how financial talks early in life can be important so that your child spends wisely in the future. The millennials referred to in the illustrations would have had more savings than spending. What are your views on this? Do you still feel you should avoid financial talks with your kids? Don’t know how to start? A financial adviser may be of help to find out the best investment plan for your child. Stay tuned for our next blog to get ideas on what type of finance tips to give to your kid.
 

The post Simple financial tips that you should introduce to your kid appeared first on MyAnmol.

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As someone who is into trading and investing, we do understand the nature of information that you share across related platforms. Thus, we value the safety of your funds and securities and prioritize it. We want your funds, securities and other sensitive information to remain secure.

Follow these simple dos and don’ts to avoid falling prey to fraudulent practices. When you are into investing and trading, there are multiple transactions that you carry out and thus you need to be careful.

Also read: Cost associated with delay in investments

The Do’s of investing:
  • Always examine the sub-broker/ Authorised Person’s credentials before Account opening
  • Always verify your Quarterly Statement of Account sent by Anmol Share Broking Pvt Ltd
  • Inform us of any irregularity or unauthorised trading activity observed by you immediately
  • Check your ledger balance regularly on www.myanmol.com
The Don’ts of investing:
  • Never trust fake assurances of fixed/higher returns. Anmol Share Broking doesn’t guarantee any fixed returns
  • Never handover signed or blank cheques/DIS or make payments to unauthorised links provided by any SB / AP / third party other than through Anmol Share Broking trading platforms
  • Refrain from handing over cash/cheques in personal name/account of an individual/entity. All cheques/ pay-ins should ONLY be in the name of Anmol Share Broking Ltd.
  • Never share sensitive information like User ID, Password, OTP etc. with anyone

So now that you know these steps, be careful when carrying out transactions related to investments. The best thing you can do is be proactive. Do not delay in informing us the moment you see any irregular activities on your account. We exist to ensure that your investing journey is as smooth as possible. Also, keep in your mind that it is not possible to predict markets. Thus, don’t go after fake assurances.

In case of any unauthorized transactions on your account, you can get in touch with our back office support team. Mail us at info@anmolshare.com/ backoffice@anmolshare.com or visit www.myanmol.com for any queries. You can also contact us at:  08040463100 / 9980411100.

The post How to stay invulnerable while trading and investing appeared first on MyAnmol.

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As someone who is into trading and investing, we do understand the nature of information that you share across related platforms. Thus, we value the safety of your funds and securities and prioritise it. We want your funds, securities and other sensitive information to remain secure.

Follow these simple dos and don’ts to avoid falling prey to fraudulent practices. When you are into investing and trading, there are multiple transactions that you carry out and thus you need to be careful.

The Do’s of investing:
  • Always examine the sub-broker/ Authorised Person’s credentials before Account opening
  • Always verify your Quarterly Statement of Account sent by Anmol Share Broking Pvt Ltd
  • Inform us of any irregularity or unauthorised trading activity observed by you immediately
  • Check your ledger balance regularly on www.myanmol.com
The Don’ts of investing:
  • Never trust fake assurances of fixed/higher returns. Anmol Share Broking doesn’t guarantee any fixed returns
  • Never handover signed or blank cheques/DIS or make payments to unauthorised links provided by any SB / AP / third party other than through Anmol Share Broking trading platforms
  • Refrain from handing over cash/cheques in personal name/account of an individual/entity. All cheques/ pay-ins should ONLY be in the name of Anmol Share Broking Ltd.
  • Never share sensitive information like User ID, Password, OTP etc. with anyone

So now that you know these steps, be careful when carrying out transactions related to investments. The best thing you can do is be proactive. Do not delay in informing us the moment you see any irregular activities on your account. We exist to ensure that your investing journey is as smooth as possible. Also, keep in your mind that it is not possible to predict markets. Thus, don’t go after fake assurances.

In case of any unauthorized transactions on your account, you can get in touch with our back office support team. Mail us at info@anmolshare.com/ backoffice@anmolshare.com or visit www.myanmol.com for any queries. You can also contact us at:  08040463100 / 9980411100.

The post How to stay invulnerable while trading and investing appeared first on MyAnmol.

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Are you a smart investor? Along with having a long-term perspective, a smart investor also saves taxes by selecting the right schemes. The answer to saving taxes – ELSS. Let’s find out how opting for the ELSS scheme can benefit you in multiple ways.

1. Long-term value growth:

The lock-in period for ELSS is 3 years. However, you can continue your investments and let it grow to accumulate more wealth. Thus, you may not redeem it after the end of 3 years. Basically, equity investments are subject to market risks. But you have the chance of having higher returns along with tax exemption as these funds invest your money in equity.

Also read: Costs associated with the delay in investments

2. A discipline of saving:

As the ELSS scheme lets you invest systematically with as low as Rs.100 (through SIP), your savings could turn into your investments. Thus, with this ease, it will make you get into the discipline of continuous investing. If you start a SIP in Equity Linked Savings Scheme, the returns will be exempted from taxes.  The returns are taxable at a concessional rate of 10% only if gains are over and above Rs. 1 lakh.

3. Opportune chance to invest in equity:

There is plenty of other savings scheme to help you build your wealth such as Public Provident Fund, Fixed Deposits, and National Savings Certificate. However, these schemes provide you with meager returns of around 8%-10%. Under favorable situations in the market, you can expect much higher returns. The only thing is to have a good portfolio with quality stocks. When in doubt about which stocks to opt for, you can always the seek help of a financial advisor.

4. Lock-in period:

As stated, there are a variety of savings schemes such as PPF, FD, NSC and many more. However, the savings scheme with the lowest lock-in period duration is ELSS. A mere lock-in period of 3 years is what you have compared to others where the lock-in period goes up to a period of 15 years! If that hasn’t yet convinced you to opt for an ELSS scheme, what else will?

5. Benefits of tax through ELSS:

The major reason why many individuals opt for an ELSS scheme is to save taxes. Under section 80C of the income tax act 1961, investments in ELSS opens your way for a tax deduction. However, under the Income tax act, only Rs.150,000 in a financial year will be allowed for a tax deduction.

Thus, if you wish to even start investing in equities or already an existing investor, opting for an ELSS scheme can not only help you save taxes but also help accumulate wealth.

The post Equity Linked Savings Scheme(ELSS): Five reasons to choose them appeared first on MyAnmol.

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A month has already passed in 2019. Still have no plans regarding your investment journey this year? What is this year going to bring if you decide to invest or are already investing? Markets can be unpredictable but you can start this year better off by having a few investment strategies. These moves can help you grow your wealth this year. Read on to find out these steps.

1. Harvest capital gains from equity mutual funds:

Small investor’s appetite has not depressed after the reintroduction of  the tax on long-term capital gains from stocks and equity funds. In 2018, the monthly SIP inflows into mutual funds rose 20%. The reason for this rise? Investors realized that the potential gains from equity funds could be higher than the 10% tax on gains beyond Rs. 1 lakh. Small investors with SIPs of 5000-10000 may not come under the tax exemption immediately. But on the other hand, bigger investors with monthly investments of Rs.40,000-50,000 will most probably get affected. If you invest Rs.35,000 per month in an equity fund, within two years even 14% annualized returns will lead to taxable capital gains. Harvesting capital gains regularly to prevent gains from building up is what you as an investor can do. So, start redeeming units after your SIPs complete a year of investing and reinvest the proceeds in the same or a different fund. Keep doing this as more of your SIPs complete one year.

2. Go for short-term debt funds:

In 2019, as an investor, you should stay away from long-term debt funds given the uncertainty on interest rates movement. It will be safer to opt for short-term debt funds.

Since debt funds carry interest rate risks, go for fixed maturity plans (FMPs) if you are not comfortable with risks. Once FMPs are held for more than three years, the gains are taxed at a lower rate of 20% after indexation as the gains are treated as long-term capital gains. If held across more than three financial years, the indexation benefit is enhanced. You will get four years indexation as some FMPs available right now will mature in 2022-23.

3. SIPs to benefit from volatility:

During the elections, stock prices may fluctuate within a narrow band and then later move sharply in either direction depending on the poll outcome. Do not stop your equity SIPs during this period of high volatility. This volatility might actually help you benefit from rupee-cost averaging. Rupee cost averaging is where you will be able to buy more fund units when they cost less and fewer units when fund NAVs rise. Thus, you are likely to miss this opportunity to accumulate fund units at a low cost if you stop your SIPs during this period. But if you stop your SIPs and restart after the period of volatility, the market may already go up.

If you are someone who started SIPs in the past 12-18 months, it is critical for you to stay invested. This is because SIPs work best during volatility. During the middle or beginning stages of your SIPs, you should actually welcome volatility.

4. Invest in the name of a senior citizen parent:

An additional exemption of Rs.50,000 for interest income was given to senior citizens through the 2018 budget. You can gift your parents money if they are not in a very high-income tax slab. Get them to invest in small savings schemes or fixed deposits. The main advantage is the higher interest rates offered to senior citizens by almost all banks. One can invest up to Rs.6.25 lakh to earn 50,000 tax-free from this strategy assuming an interest rate of 8%. Gifts to parents and investments in parents’ name will not be subject to clubbing unlike gifts and investments made in the name of a spouse. Also, on the money that you give to your parents, there is no gift tax. So you can make use of their basic tax exemption limit. If they are above 60 it is 3 lakh and 5 lakh if they are above 80 years of age. In case the exemption limit exceeds you can help them save taxes. The way out is by investing in a scheme that is eligible for deduction under Section 80C.

Also read: ELSS, the tax saving mode that makes sense

5. Consider NPS:

By extending the tax exemption to the entire 60% of the corpus that can be withdrawn at maturity, the government has removed a major hurdle from the National Pension Scheme (NPS).

Investors can now allocate up to 75% to equities. Till the age of 70, they can stagger withdrawals and stay invested. Furthermore, NPS fund managers can invest in a larger universe of stocks. All NPS funds have given double-digit returns in the past 5 years. NPS can also help reduce taxes significantly.

Thus, if you have not yet decided on your investment strategy for this year, we hope you find these tips useful. To start your investment journey or get help with your existing investments, consult a financial planner now.

The post Invest profitably: 5 smart moves to decide where to invest in 2019 appeared first on MyAnmol.

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Investors and individuals who have not yet started investing want one thing- to save taxes. Taxes are capable of taking away a substantial amount of your income. Thus, it is important to ensure that you choose an efficient tax saving option. Read on to find out how ELSS can be an efficient tax saving option.

Every investor wishes for sustained high returns. But how? Keep investing for the long-term so that the investments you make are able to fetch you higher returns with the power of compounding.

Under the Indian tax law, savers have various tax saving avenues such as ELSS mutual funds, National Pension Scheme, Public Provident Fund, Senior Citizens’ Saving Scheme, Sukanya Samriddhi Yojana, and others. However, in the journey of saving taxes and making investments, individuals often take dissatisfactory investment decisions.

The main reason is the lack of adequate information to differentiate the goals of tax saving and making investments. Most of the investors make these decisions on pressure because of time constraints. The end results? They take sub-optimal investment decisions. When you find it later, you just console yourself by considering the fact that you were at least able to save taxes. However, if there is a better tax saving option for you, why settle for something that does not provide the maximum benefit? You may do this repeatedly. If this turns into a habit, it can turn out to be expensive in the long-run.

Also read: Liquid funds meaning and their requirements in the portfolio 

What is crucial to understand is whether the advantages associated with the investment is more than the disadvantages associated with the tax benefits. As an investor, you need to stop making poor decisions due to time constraints. You should also avoid rushing into investments to save taxes without proper thought. What can investors do? They can plan investments as early as possible i.e. at the initial period of the year.

As an investor, ELSS can be the most suitable investment. Many salary earning individuals have some amount going into fixed income through PF deductions. ELSS is the only tax-saving investment within 1.5 lakh limit that brings the benefits of equity returns. Thus, we would recommend equity. There may be other forms of tax-saving investments that one may opt for. But some lack transparency. Others may only be suitable for retirement rather than savings. But the advantage of ELSS is that you can invest as much as you want. Also, unlike many other avenues with a longer lock-in time period,  ELSS only has a 3 year lock-in period. The thing to be taken into consideration is that under the Income tax act, only Rs.150,000 in a financial year will be allowed for a tax deduction.

If you are a beginner into investing, ELSS can prove to be an excellent bridge. It can connect you to equity investing as well as mutual funds. Also, the shortest lock-in period and no upper time limits make ELSS the best tax saving scheme. Once you start getting returns from long-term equity investment, you can try other forms of equity investments as well. There are different forms of equity funds depending on the risk appetite.

Now taking three different instruments which are PPF, Nifty 50 Total Return Index and ELSS, based on different scenarios, let’s find out how they perform over a 20 year period. In each instance we take Rs.1.5 lakh as the annual investment made on 1st March every year. Rs 1.5 lakh is taken as that is the upper limit amount required to claim tax deduction and save tax.

The outcome revealed that the corpus of Rs.30 lakh invested for a period of 20 years grew to Rs.2.28 crores in the case of ELSS which is the highest. In the case of Nifty 50 Total Return Index, the corpus grew to Rs. 1.55 crore. The lowest returns was from PPF which only gave Rs.77.82 lakhs returns. The first chart shows PPF returns and the second one ELSS.

In the short-term equity investments may carry higher risks. But in the long-term (five years or more) they not only provide higher returns. The risks also considerably get lower. The best way to invest in equity funds is through monthly SIPs throughout the year. Bank FDs and other similar deposits become sub-optimal due to inflation. SIPs also avoid investors from rushing into anything.

To know more about ELSS and its benefits for saving your taxes, head to a financial planner now.

The post ELSS (Equity Linked Savings Scheme): The tax saving mode that makes sense appeared first on MyAnmol.

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Have you been wanting to invest but been postponing it for some reasons every time? Did you fail to save this month as well and thus decided to delay investing again? Well, if that is what you have been doing, read on to find out how delay is expensive with each passing day.

If you are someone who just started working or is already working, now you have regular income. However, ask yourself if you will be able to work throughout your life. There will be a time when you will not have a regular income anymore. So that’s where investing comes into picture.

Some of you may say that a savings account fetches you 7.5%-8% returns. But returns on investments range higher and have also reached more than 18%. Consider the loss that you have been facing. If this data has still not convinced you to start investing, read on to find relatable scenarios.

Case I:

Let’s say Harshu starts investing at the age of 26. He decides to retire at the age of 60 and thus has 34 years to plan it out. In the first year he invests Rs.2000 monthly and then increases his investment by 10% annually. Assume the return on the investment is 11% (this is taken based on the average returns of an equity-linked fund). Let’s see the three options that Harshu has:
As you can see in the table above, the more Harshu delays his investment, more are the costs of the delayed investment. If Harshu starts early, he’s able to accumulate a noticeably large amount of wealth compared to the delay. SIP investments fetch better returns when you start early. This way, the duration of investment is longer. With a SIP starting as low as Rs.100, the least you can do is just start investing.

Also read: What matters- time in the market or timing the market in SIP?

When you start to invest early, the compounding effect comes into picture. Compounding works wonders when you start early. Let’s assume in the previous case, Harshu invests Rs.30,000 in an instrument that yields 10% returns. So, in the first year the return generated will be Rs. 3000 (10% of 30,000). Now Harshu decides to re-invest the amount along with the returns (Rs.30,000+Rs.3000). Thus, he invests Rs.33,000 next year. In the second year, the returns generated increase and reach Rs. 3300. Harshu re-invests the amount along with the returns. This is how compounding works. The initial investment along with the returns compounds itself to yield higher returns with time. Thus, avoid delay.

Case II:

Now, let’s assume that in all three scenarios, Harshu increases his monthly investment in such a way that his total investment remains same in all cases.

As seen in the table above, the returns generated for each year varies significantly even if the total investment during each duration remains the same. The first scenario with 34 years of duration has the longest time duration and thus yields the fruits of the compounding effect. In the last two scenarios, it clearly shows how delay affects returns on the investment. The conclusion- Start early.

So in reference to the above cases, what are things that you need to keep on your mind then? The following points should be considered when you want to make investment decisions without any further delay:

1. Importance of starting early without a delay:

We understand that everyone may not have the same financial abilities to invest a big amount monthly. You might have just started earning. So you can start investing Rs.100 monthly. The thing that matters here is the ample time that the investment will have to grow

2. SIP- the easy mode to invest:

Just like other bills ands expenses that you pay monthly without any delay, similar is the case with a SIP. Start investing without any delay every month. Then watch your wealth grow over the period. With SIPs, the amount you decide to invest monthly gets automatically debited from your account on a fixed date. Thus, the process is hassle-free

3. Discipline:

With SIP investing, you get into a discipline of saving a certain amount every month. This discipline leads to growing of wealth for your own secured financial future. But, you need to have the discipline to not withdraw your funds before your investment meets your goals. With the effect of compounding, the returns start to grow gradually over time. Thus, you get better returns compared to what you get in the initial years of investment where the pace of returns is relatively low.

Next time when you think that you do not have enough finances to start investing, now you know that SIPs start as low as Rs.100. You can always start with this amount and gradually increase your investment amount as you start earning more. Certain lifestyle changes will enable you to save more and you can invest for your future goals. But all you need to do is to start investing without any delay to let compounding work for your investments. Remember- good things take time, thus begin now or never!

Head to a financial planner now to make a financial plan for yourself and start saving.

The post Investment delay and the effects: What is the cost associated? appeared first on MyAnmol.

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It’s that time of the year! Can’t hold your excitement for the bonus money that you will be receiving for all that hard work, can you? You may have already made plans for the bonus that you are about to get. Here are a few tips which can help you use that bonus wisely:

Clear your credit card dues:

Does repaying off those loans feel like a burden? It’s a good move to clear the loan which has the highest interest rate and provides no tax benefits. You can also choose to clear a personal loan over other forms of loans such as home loans or car loans. If you have taken a personal loan, you know why. Personal loans usually have higher interest rates compared to other loans. Also, you can clear loans taken from your friends or family. It will help you maintain your relationships well. Thus, do not be in a hurry to prepay your home loan. Instead, use that amount to invest for a long-term and gain.

Planning for retirement:

Retirement needs planning although most people do not pay attention to this aspect. One has to remember the fact that he will not be able to work forever. Thus, what you save today will determine how much money you will have during your retirement. With the living costs rising continuously, you need to accumulate a corpus which is able to beat inflation. Thus, with the bonus money, you may invest in schemes such as Public Provident Fund (PPF) and Employee Provident Fund(EMP) for your retirement. However, many people tend to neglect to invest and keep delaying it. However, with the delay there are many costs associated.

Also read: How to plan the golden years of life i.e. retirement

Long-term investment:

With the bonus money, you can invest for a long-term in equity mutual funds. You can also choose STP. A Systematic Transfer Plan(STP) can help you invest a large bonus amount to mutual funds.  STP can help reduce risks as well. You can head to a financial planner if you want to know which financial avenues can be suitable for you to invest in.

Big purchase:

You may have dreams of buying a home, car or any other expensive things of interest to you. So, set your money aside for these goals and do not withdraw money saved for another goal. For example, do not use the money you saved up for your child’s marriage to purchase a new house.

Bonus money for an emergency fund:

Save the bonus money to help you in time of uncertainties. Emergencies do not come planned. Plan your emergency fund and maintain a separate account to transfer that amount so that it is safe and handy. Park these funds in mutual funds or instruments where the withdrawal is easy. You can also invest your money in liquid funds which give you better returns compared to a savings account and the investments are also comparatively safe.

Treat yourself:

You have received this bonus money as a result of your hard work. It’s the right opportunity to use this money to reward yourself.

The post Bonus money: Where can you invest the bonus money you get? appeared first on MyAnmol.

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Keep hearing and seeing stuff related to liquid funds such as bonds, government securities and so on? But never invested in any liquid portfolio because you think you lack the knowledge and time to invest in such financial avenues? This article will help you know how investing in a liquid fund is going to be a beneficial decision of your life. If you want to find out why you should start investing in liquid funds, read on.

Returns on liquid funds versus savings account:

Your savings account can give you returns of only about 4-6% rate of interest. On the other hand, the best liquid funds have provided an interest rate yield of about 7.5-8% that too in a one year period. Thus, liquid funds give higher returns than savings account any day.

Planning for a contingency fund:

As a business or individual, one must be prepared for any emergency financial crisis. With contingency planning, you can do so for any foreseen and unforeseen economic circumstances.

If you wish to start a SIP, you should not use that amount elsewhere. You should wait for the liquid fund corpus to reach the amount you want at the end of the period. You are saving up for a goal so let your investments grow.

Way to invest in equity:

When you take SIPs, you can invest in equity funds. Many individuals tend to transfer the amount from their savings account into the selected equity funds. However, if you need balance in your savings accounts for your daily financial needs, it is not a wise decision. It is good to have a separate account for your investments and another for your regular needs.

Ultra short-term bond funds:

These are short-term funds that invest in securities with a maturity period higher than 91 days. They are very similar to liquid funds. But in the case of liquid funds, these securities invest in debt avenues with a maturity period of up to 91 days. Thus, they have a chance to earn higher returns. However, with the higher returns, the risk intensity also goes higher.

Why do you invest in liquid funds then?

So, liquid funds give investors the advantage of diversification in their portfolio. Moreover, they are very flexible and also have a short-term duration of the investment. Thus, it makes sense to have liquid funds in your portfolio. When choosing a liquid fund, keep the risk and returns of the funds on your mind. It is a good move to start investing in SIP through a liquid fund.

Want to invest in liquid funds? Head to a financial planner now!

The post Liquid funds: Why do you need them in your financial portfolio? appeared first on MyAnmol.

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If you want to invest in a SIP, you may have a significant question. When should you start investing? Some individuals start ultimately. But there are others who only think of it and take no action. Thus, even if you are the former or the latter, here is a simple story to help you know when you need to start investing in a SIP.

This is a story of four characters who start investing in a popular fund but at different times. Let us find out what fate brings for each of them.

What do they do?

So, Harry, Ron, Sid and Fred all decide to start investing. Just like any investor, each one has dreams to grow their wealth. However, each has a different approach to investment. While Harry starts investing as early as in the year 2007 on 1st January, Sid starts investing exactly a year after that (1st Jan 2008). 

So why does Harry invest in 2007? He notices the market has been growing over the past 3-4 years and starts investing without any delay. Thus, Harry is the first one to start investing in a SIP among all four. Similarly, Sid too gets into the world of investments through SIP a year after Harry does. As a firm believer of the growing markets, Sid starts investing because he does not want to lose out any opportunity to create wealth in a growing market. So it is a known fact that markets fluctuate. Thus, both of their investments also go through market fluctuations in their investment journey.

Two years after Harry starts his SIP, Ron starts his SIP on 1st Jan 2009. In 2009, the market was at its peak in terms of the global recession. There is a market crash by 50% from its peak. So why does Ron invest during this period? Ron believes that a market fall is a right time to invest in to make more money. Ron was waiting to start investing in a time when the market is low otherwise he would have started before Harry.

Also read: Take a SIP to live your dreams

The last one to start investing is Fred. Fred has a different mindset. He is someone who wanted to invest a long time back but only waits because he wants a more stable market. He starts with his SIP on 1st January 2010, after waiting for the recession to get over.

So now we know that the first one to invest in a SIP is Harry followed by Sid, Ron and Fred respectively. An important question now arises. Harry and Sid were the ones to started investing early, but their investments went through market recession as well.

SIP investment results:

You must be wondering that due to recession Harry and Sid must be the ones to lose out in their investments. Harry and Sid were the ones to start investing early. Ron and Fred are the kinds of investors who time the market to start a SIP investment. 

Is it shocking to know that Harry and Sid are at the winning end? There was a recession period too during their investments. But they still got higher returns. How? The answer is volatility. Yes, this much-dreaded enemy of investments is a friend. That is how Harry and Sid benefitted. SIP yields higher returns in the long-term in volatile markets. But how does volatility help? The answer is simple- stay invested. When you stay invested in the markets for long term volatility becomes your friend. This table shows the returns for each of them:

To put it solely for you, SIP benefits an investor even if there is volatility in the long run. The table above shows the proof that staying invested and being patient is the key to gain returns. What more? It makes you practice the discipline of saving.

So next time when you want to know when you should start investing in a SIP, remember these four investors. To invest in a SIP, you need to have a willingness rather than timing the market. Just remember to start early to achieve your investment goals.

So if you have still not started your SIP, head to a financial planner now and start investing.

The post SIP: What matters? Timing the market or time spent in the market? appeared first on MyAnmol.

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