Yesterday I met with my 2 clients, One is already have SIPs since 1 year old and second is thinking that should he starts SIP now or wait for correction.
Answer and Question from My Side :
1. Current Sensex is on it's High and will Go Down in Future as per your Knowledge. How much it will go down from here?
Both told me that they don't know.
Ok, If you don't predict the down market why should you worry?
They told we may loss our money.
Ok, for which purpose do you want to invest and for how much Period?
We have enough time one told me I have 15 years and second one told me 12 years.
Ok, then if you start investing in SIP and if NAV will go down, it is not loss it is notional loss, which you can see in your valuation. At that time you redeem your units you will get loss.
When you continue with your Investments you will get more units in down market and I call it SALE in market.
As per Equity Market data there is 0% chance of loss in 15 years or more horizon and 3.50%chance of loss in 10 years horizon.
As per Market Data as on July 2014 - if someone invested Rs.100000/- for 10 years in that period his value was Rs.524199/- and if he missed best days in that 10 years what happened? (Courtesy Jigarbhai Parekh)
Missed 2 Best Days his valuation was Rs.412801/-
Missed 5 Best Days his valuation was Rs.337181/-
Missed 10 Best Days his valuation was Rs.251906/-
Missed 20 Best Days his valuation was Rs.149353/-
Missed 30 Best Days his valuation was Rs.95781/-
Missed 40 Best Days his valuation was Rs.65713/-
So from 3650 days Investments, if you missed Best 40 days your Rs.100000/- became Rs.65713/- and if you invested without any hesitation for 10 years your Rs.100000/- became Rs.524199/-
Don't predict the Market Start Your SIP at Any Time and Stay Invested till Your Goal.