SARASIJ'S BLOG

NEWS & VIEWS|||SARASIJ|||31st MAY2026

Image
  NEWS & VIEWS|||SARASIJ|||31 st MAY2026 SUNDAY| VOL—V/2026/MAY OPINIONATED, FOR FREE CIRCULATION. “ यतो धर्मस्ततो जयः" The Sanskrit phrase " यतो धर्मस्ततो जयः" ( Yato Dharmastato Jayaḥ) from the Mahabharata translates to "Where there is Dharma (righteousness/justice), there is Victory". It is a well-known verse with 13 occurrences in the epic, associated with the principle that moral conduct triumphs.   INDIA: (GOI, SWARAJYA, VISHWAMITRA, HINDU POST, INDIA TODAY). Prime Minister Narendra Modi will share his thoughts with the people of the country and abroad in the Mann Ki Baat programme on Akashvani tomorrow at 11 AM. It will be the 134th episode of the monthly radio programme. In Karnataka, the Congress Legislature Party meeting in Vidhana Soudha has elected D K Shivakumar   as their new leader after the resignation of Siddaramaiah.   He will take oath as Chief Minister on next Wednesday. Goa yesterday celebrated its 40th Statehood Day ...
Post a Comment

 

SYSTEMATIC INVESTMENT PLAN

SIP: PROS & CONS

SARASIJ MAJUMDER

 

NDA-3 commenced. Budget for this FY will soon be placed in Parliament. TAX rebate is expected, which will increase Consumption, boost economy, FMCG sector, INFRA sector due to GOI economic action and also enhance GST and IT deposit. Market is expected to be BULLISH.

I suggest, you  think of long term investment through SIP. This route is best for those who are otherwise busy, and not so Investment Savvy.

I discuss below investment rough  SIP  in some details.

A Systematic Investment Plan (SIP) is a method of investing in mutual funds. It allows investors to contribute a fixed amount of money at regular intervals (e.g., monthly, quarterly, etc.) into a selected mutual fund. Here are some of the pros and cons that you might want to consider before investing through a SIP:

Pros of SIP:

1. Disciplined Saving: SIPs encourage regular saving habits as they require fixed amounts to be invested at regular intervals. This disciplined approach helps build wealth over time.

2. Rupee-Cost Averaging: By investing a consistent amount at regular intervals, you purchase more units when prices are low and fewer units when prices are high. This averaging reduces the risk of investing a large amount at the wrong time.

3. Compounding Benefits: With SIPs, you regularly invest a fixed amount. Over time, not only does your investment grow, but the returns you earn also start earning returns. This "snowball effect" means your money keeps growing faster the longer you invest.

4. Convenience: Once set up, SIP investments are automated, which makes them convenient and reduces the hassle of actively managing once own portfolio. There are customizations available, which include SIP step-up, also known as SIP top-up, STP or Systematic transfer plan, and SWP or Systematic withdrawal plan

5. Low Minimum Investment: SIPs allow investors to start with small amounts, reducing the barrier to entry for individuals with relatively smaller salaries or capital in hand. One can start SIPs with as low as INR 100 for the chosen frequency.

Cons of SIP:

1. Returns Depend on Market Timing: While SIP helps reduce the impact of volatility, the total returns are still dependent on the overall market performance across your investment periods. Poor market performance can affect the accumulated fund value.

2. Liquidity Issues: Some SIPs, especially those in equity funds, may have lock-in periods (like ELSS funds) or exit load are charged basis the percentage mentioned in Scheme Information Document (SID) for early withdrawal, which can affect liquidity. One needs to be mindful of the investment objective and extra cautious of the risk profile, when choosing a fund for SIP investments.

3. Cost Averaging Limitations: In a consistently rising market, rupee-cost averaging may result in higher average purchase cost compared to a lump sum investment at the beginning of the period. This is a situational disadvantage, obviously subject to the market situation.

4. Requires Long-Term Commitment: To truly benefit from compounding and averaging, SIPs require a long-term investment horizon. Short-term investors might not see significant benefits.

5. Over-Diversification: If not properly managed, investing in multiple SIPs can lead to over-diversification, which might dilute returns as much as it spreads risk.

Understanding the above pros and cons can help investors decide if SIPs align with their investment goals, risk tolerance, and financial circumstances.

I think NIFTY 50, and Défense Index funds are good options. You need a DEMAT account, if you are not having already.

Read my other BLOGS on investment, already posted,  links furnished below.

FOR FURTHER READING:

1.0 https://sarasij1majumder.blogspot.com/2023/12/mutual-funds-for-long-term-investment.html

2.0 https://sarasij1majumder.blogspot.com/2024/01/seven-mutual-funds-warren-buffetts-buy.html

3.0 https://sarasij1majumder.blogspot.com/2024/05/investing-in-psu-effect-of-new-policies.html

Disclaimer

This BLOG is for EDUCATION purpose only. Any investment in the Money Market has associated risk.

 

Comments

Post a Comment

Popular posts from this blog

Image
  REVIVAL OF ARVARI RIVER What a Leader, and People can do. SARASIJ MAJUMDER   REVIVAL OF ARVARI RIVER— Arvari river is a small river, may be the smallest, in the ALWAR,   Indian state of Rajasthan. The 90 km.   long river flows through the Alwar District of Rajasthan. It got dried, and   was revived in 1990. It remained dry for 60 years. The turnaround started in 1986, when people of Bhanota- Kolyala village with   the help of Tarun Bharat Sangha, managed by Rajendra Singh, constructed a   JOHAD, (earthen check dam) at the source of the dried river; following this,   villages that lay in its catchment area, and along the dried river bed, they also built tiny earthen dams, the largest being a 244 mt. long and 7 mt. High Concrete dam, most of them were in the Aravalli hills; eventually when the number of dams reached 375, the river started to flow again in 1990, after remaining dry for over 60 years. Villagers talk about Arvari's rebi...
Read more

THE STORY OF LOVELY KHATUN

Image
  THE STORY OF LOVELY KHATUN SARASIJ MAJUMDER Trinamool Congress (TMC) leader Lovely Khatun, who served as the Pradhan of the Rashidabad Gram Panchayat in West Bengal's Malda district, was stripped of her post by the local Sub-Divisional Officer (SDO) following allegations that she is an illegal immigrant from Bangladesh. The whole story is narrated below. The Background and Controversy:   The controversy erupted after her defeated political rival, Rehana Sultana, filed a petition in the Calcutta High Court,   accusing her of being an illegal Bangladeshi immigrant who procured forged Indian documents, and got elected. What Investigations revealed:   Identity Discrepancy: Investigations unearthed   that Lovely Khatun's real name is Nasia (or Nasifa) Sheikh and that she allegedly entered India without a valid passport. Forged Documents: She is accused of forging her father's name (listing him as Sheikh Mustafa instead of her actual father, Jamil Bisw...
Read more

SIR—WEST BENGAL ||| WHAT IS REVEALED

Image
  SIR—WEST BENGAL WHAT IS REVEALED SARASIJ MAJUMDER In West Bengal, during the Special Intensive Revision (SIR) process, massive irregularities have been detected in the 2002 voter list during progeny-mapping or identification of new voters based on the names of parents or relatives. Although the first phase of the SIR has ended, the Election Commission continues to cross-check and repeatedly scrutinize the submitted forms. During this process, information about these “logical discrepancies” has come to light, according to data released by the office of the Chief Electoral Officer of the state.   1.0 Names of fathers of 85 lakhs 1thousand and 486 voters are incorrect or mismatched, which accounts for 11.09% of the total voters. 2.0   For 24lakhs 21thousand 133 voters, the number of children recorded is more than six. 3.0 Major inconsistencies have also been observed in the age differences between parents and children. In 11 lakh 95 thousand 230 cases, the age ...
Read more