Request of SIP Strategy Suggestions

POSTED BY meetvetri ON September 21, 2014 10:47 pm COMMENTS (2)


I’m looking to invest through SIP route in Mutual Funds with a 15-20 year horizon. Requesting from fellow forum members who have invested in SIP for at least 10 years.

Kindly enlighten me on the following.

1. Could you share details of the MF scheme you invested and gains made over these years?

2. How did you selected the fund you started and continue to invest?

3. Did you ever switch the funds? If so, what was the motivation?

4. Did you increase the periodic amount over years?

5. How to remain disciplined in tough times?

6. What are indicators for alarm bells?

7. Does cash out attracts normal IT rate or can take long term capital gains?

8. Is there a bull market vs bear market phase to be considered for starting  the SIP?

9. Any other suggestions?

2 replies on this article “Request of SIP Strategy Suggestions”

  1. santy221 says:

    There are ton of blogs which can help you to choose your strategies but you need to pick one which suits you.

    Here is what I did:

    I had invested in stocks, IPOs, Mutuals Funds all in random fashion and made money and then LOST a ton of them. At one point I was 80% down in my stock portfolio. Then it hit me that I don’t have a clue on stocks and to stop looking for bucks under it.

    I started looking up at blogs (Manish and Subra), Value researchonline and of late Morningstar. Understood the need to mix large cap and small cap and decided to choose funds from different fund houses.

    I picked a date and chose a MF and started a SIP. I also started tracking all my investments in a single place which gives me a consolidated view. At the end of month, I take a snapshot of my portfolio and save it for my records. This avoids all illusions and imaginary arguments.

    I have now been investing for close to 4 years now and for the first 3 years, my returns were ranging from -10% to +10% for most part. Always Be Patient and continue investing. Over the years, the SIP amount has grown and I have started investing in 4-5 MFs (all in SIP) but the process is same – Pick N Stick.

    From start of this year, we have a huge up swing and I feel my patience is rewarded. Now the portfolio is around 30% CAGR which I am sure none of other instruments would have provided. I haven’t paid off my home loan but my SIP is still ON.

    Every few months, I had the temptation to get back to stocks and start dibble in it. To avoid that, I still have the loss making portfolio of stocks (still at 50-60% in negative) and I take a look at that. That serves as a reminder to not get into things which I dont know. The money is still several thousands but the lesson that teaches me every month is worth much bigger!

    You learn as you go. But Start NOW!

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