Does SIP actually work? If yes, then why don't all people invest in it?
Latest Update for those who are doubting the Magic of SIP (and this data is from AMFI - Association of Mutual Funds in India only. I hope people won't doubt data from AMFI atleast).
Yes SIP does work for anyone and everyone.
But it doesn't work for all investors. Why? Keep reading...
There are three category of investors:
First category of investors are those who do not have patience. They want to get rich overnight. They want quick money. For them, Intraday Trading might work, but not Mutual Fund.
The second category of investors are those, who hav patience, but not knowledge. They end up investing in wrong products such as the ULIP.
The third category involves investors who have both knowledge and patience, but not a forward looking approach. They don't change with the time and continue with the traditional products, such as the FD and Recurring Deposits.
It's necessary that people get educated on all fronts.
*mutual funds are subject to market risk, pl read documents carefully
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