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5 SIP Myths You Need Not Believe In


There are two ways of investing in mutual funds. One is through the lump sum route, and the other is through the systematic investment plan (SIP) route. Not all investors are comfortable making lump sum investments, one of the reasons being they are not sure about the best time to invest. Investing through the SIP route can help alleviate this difficulty because, unlike making a one-time contribution, it is a method of investing in mutual funds at regular intervals where the investor can choose the contribution amount, tenure of the SIP and the frequency. With SIPs, you can also reap the advantages of rupee cost averaging and benefit from investing across all the market cycles. But often, there are a slew of myths surrounding various methods of investing, which can deeply confuse an investor and lead him to make uninformed decisions. And it is no different with SIP.

So, what are some of the
common myths surrounding SIP
? We have identified five such myths, which we will attempt to debunk in this article. Read on to find out.


Helpful information for investors: All Mutual Fund investors have to go through a one-time KYC (know your Customer) process. Investors should deal only with registered mutual funds, to be verified on SEBI website under ‘Intermediaries/ Market Infrastructure Institutions’. For redressal of your complaints, you may please visit . For more info on KYC, change in various details & redressal of complaints, visit This is an investor education and awareness initiative by Nippon India Mutual Fund.

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.



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