SIP for Systematic Investment Plan is now the most convenient way to invest in the stock market. SIP works great for Stocks as well as Mutual Funds too. I have been investing through the SIP in the market from the last 8 years, and it's a best way to invest because you will have discipline and at the same time you know that you have to keep that money in account.
PC: Pixabay.com
Finfluencers has helped most of the people to educate about the SIP and it had worked great. But now they are changing their stance, in the last 3 to 4 days I am seeing increasing number of posts and videos about how the SIP is middle class trap. I will not say that SIP is a trap because it has helped me to achieve the wealth till now. And for the middle class this is the best way to invest. Majority of the middle class have fixed income, every month they will get the salary and will use that for their hosuholds.
Now what they have started now is that they are saving as well as investing small portion of the income though the SIP. It has worked wonders because now people are actually building the wealth slowly and steadily. But now people have stated calling its as a trap. Saying that rich doesn't do SIP. The thing is rich doesn't have to do SIP because they have the money in the business already. For the middle class itself, where most of the people were saving in the FD that money has started flowing towards the market.
For the rich, they can sit on the money as well as even if some part get lost, it doesn't matter to them. But for the middle class every Rupeee matters and that's why dollar cost averaging also helps the middle class. For middle class we cannot sit on the money and don't earn anything because we have to have growth everytime and that's why investing in the market matters to us. And since we are salaried, SIP is thr best way to invest.
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