When does a Retail Investor creates wealth from Mutual Fund Investments?

It’s so easy to continue SIP/ Lumpsum Investment in Mutual Funds when Sensex/ Nifty is at Life Time High.

But have you ever imagined how difficult it will be to continue SIP/ Lumpsum Investment during Bad Times when the markets are making new lows and your Portfolio shows Negative Annualised Returns of 10% or more and that too for a relatively long period.

True character of an Investor is tested when the times are bad. Those who have the guts to keep investing during prolonged periods of Negative Returns are the Ones who creates loads of Wealth from their Investments.

Hence if you have the appetite for Tention free Investing during tough times and are willing to keep Investing for decades to reap benefits of Compounding, then only think of Investments in Mutual Funds, else opt for safer options like Bank Fixed Deposits etc.

 

https://economictimes.indiatimes.com/mf/analysis/are-mutual-fund-investors-betting-on-sip-for-wrong-reasons/articleshow/69751890.cms

Leave Comment

Your email address will not be published. Required fields are marked *