Can I lose my invested money in SIP? (2024)

Can I lose my invested money in SIP?

The answer is Yes & No. If you follow the SIP format, in short term(2–3 years), the investment value may go below the original amount invested. But in longer term(> 5 years), the investment value will be much higher than the originally invested amount.

Is it possible to lose money in SIP?

If a person invests without any research, he can suffer loss even through SIP. While investing in any fund one should always compare its past performance, outlook and expense ratio. The mistake many investors make while investing in mutual funds is that they do not set their financial goals.

Is money safe in SIP investment?

While SIPs provide a disciplined approach to investing, it is important to recognize that they are not immune to market risks. Mutual funds, which are commonly associated with SIPs, are subject to market conditions, and their value can fluctuate. Therefore, the returns on SIP investments are not guaranteed.

Can SIP go negative?

Yes, SIP investments can experience negative returns due to market fluctuations. The Net Asset Value (NAV) of mutual fund units, linked to market conditions, may decline during downturns or volatility.

Can money invested in SIP be withdrawn?

Can I partially withdraw my mutual fund SIP investment? Yes. You can partially withdraw your mutual fund SIP investment at any time. Also, there's no limit to the number of partial withdrawals you can make.

What if I invest $1,000 a month in SIP?

If you were to invest Rs 1,000 per month into an equity SIP over a span of 30 years at 12 per cent per annum, you would have invested only Rs 3.6 lakhs. However, your portfolio's value would have grown to an impressive Rs 34.9 lakhs.

What if I invest $10,000 in SIP?

Jiral Mehta, Senior Research Analyst, FundsIndia said that in this strategy, if you invest Rs 10,000 every month, assuming annual returns of 12 per cent, it takes 8 years to reach the Rs 16 lakh maturity amount.

Is SIP 100% safe?

SIPs are not entirely risk-free as returns are linked to market fluctuations. However, they are considered relatively safer due to the rupee cost averaging strategy and the ability to withstand market volatility over time.

What if I invest $5,000 in SIP?

Calculation of SIP returns

A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh. The gains made by you in this scenario will be approximately Rs 5.61 lakh (Rs 11.61 lakh minus 5000*10*12).

What is the 8 4 3 rule in SIP?

What is the 8-4-3 rule of compounding? In the 8-4-3 strategy, the average return of a particular investment amount for 8 years is 12 per cent/annum, while after that time period, it will take only half of that horizon, i.e., 4 years (total 12 years), to get a return of 12 per cent.

What are the dark side of SIP?

There are very few negative of SIP which are ignorable: Date of investment is fixed and you cannot even manipulate it by one or two days. Your average entry date is delayed. Each installment of sip have different entry price, so calculating return is tough.

Should I stop my SIP during recession?

It has also been historically observed that investors tend to stop their SIP investments during an economic slowdown. However, if you look at the mutual fund returns from 2008 till now, a recession can be the best time to invest in the market.

What happens if SIP fails?

Your SIP will continue and will continue from next instalments. However, if you miss your SIP payment two consecutive times, then it may lead to termination of your SIP. Your investments may be sold off at the latest price and money will be credited back to your bank account.

Is SIP tax free?

SIP falls under the EEE (Exempt, Exempt, Exempt) category for Equity Linked Saving Schemes (ELSS). The amount invested, the amount received at maturity, and the amount of the withdrawal are all tax-free. One may deduct up to Rs. 1,50,000 annually using SIP in an ELSS fund.

Can I exit SIP anytime?

Can I withdraw my SIP anytime? Yes, you can withdraw money from your SIP anytime. However, there are a few exceptions. For instance, ELSS has a lock-in period of three years, while a children's savings fund exhibits a lock-in period of 5 years.

Can I break my SIP anytime?

Yes. You can cancel a SIP any time you want.

What if I invest $2,000 a month in SIP for 5 years?

Say you invest Rs 2,000 every month through SIP in an ICICI Bank mutual fund for five years, and let's assume an average annual return of 12 per cent. By the end of five years, your total investment of Rs 1,20,000 could grow into around Rs 1,62,000.

What if I invest $10,000 in SIP for 3 years?

The mutual fund SIP calculator shows that a monthly investment of Rs 10,000 in this fund would have grown to approx. Rs 10.9 lakh in three years. The regular plan of the scheme has given a return of 62.19% in three years. A SIP of Rs 10,000 under the regular plan of this scheme would have grown to approx.

What if I invest $5,000 a month in SIP for 10 years?

The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 30.5 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 28.6 lakh in 10 years.

Does SIP give monthly returns?

But, if the fund is not volatile, the returns of monthly SIPs will be high as compared to daily SIPs. Monthly SIPs offer better investment planning opportunities, as you can monitor the investment in a better way. However, you could struggle to monitor investments if you put money in mutual funds through the daily SIP.

What is 3000 SIP for 5 years?

What if I invest Rs. 3,000 a month in SIP for 5 years? If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.

What if I invest $5,000 in SIP for 20 years?

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

Is SIP better than FD?

If your primary investment goal is capital preservation and you do not expect high returns from it, you can invest in an FD. If you want to make goal-oriented investments which would fetch you higher returns, invest in a SIP.

Which bank SIP is best?

Which SIP gives highest return?