SIPs: 7 Crucial Insights Before You Start or Stop Investing

• SIPs are not risk-free; they are a method of investing, not a risk reduction tool. Market fluctuations affect SIP investments, and choosing the right fund based on goals and risk appetite is crucial.
• You can start SIPs with as little as Rs 500 per month, making them accessible and flexible. Options to pause or skip installments exist, though consistency is advised.
• Time and compounding are key to SIP success. Long-term investments (10-15 years) show consistent positive returns, with compounding significantly boosting wealth over extended periods.
• SIPs leverage market volatility through rupee cost averaging. When markets are down, more units are purchased, averaging out costs and potentially improving returns during recovery.
• Consistency is vital; skipping even one SIP annually can significantly reduce the final corpus. Staying invested through market cycles is more beneficial than reacting to short-term noise.

Why It Matters: Understand SIPs are long-term wealth creation tools requiring consistency, not short-term market timing.