SIP: Essential Tips Before Starting or Stopping to Avoid Major Losses

• SIPs are not risk-free; they are an investment method, and fund fluctuations still apply. Choose funds based on goals and risk appetite.
• Start SIPs with small amounts (as low as ₹500) and utilize flexibility to pause or skip installments during financial pressure.
• Long-term investment is key for SIPs, leveraging compounding to achieve significant returns over 10-15 years.
• SIPs use rupee cost averaging to turn market volatility into an advantage, buying more units when prices are low.
• Missing even one SIP installment annually can lead to substantial losses over the long term, impacting wealth creation.

Why It Matters: Understand SIPs are not risk-free; long-term discipline, consistent investment, and increasing contributions are vital.