This is by far the worst and most stupid article EVER on Rediff. I would call this a dangerous article as well, and people must protect themselves against such illetrate crooks.
I think its a stupid article and doesnt deliver any fruitful result. Moreover its trying to make a point which in investment term if seen then trying to rduce the end value of investors as most of them doesnt care to renew SIP on that freequet Level as said in article.
Re: Stupid Article
by tushar bhajantri on Sep 10, 2010 04:42 PM
Actually short term sip works when you are contributing more amount . For ex if 1.14 lacks SIP for 60 month can total contribute 69lacks @ 15% sip returns can get you 1 crores at 5 year end . You are getting 31 lacks on 69lacks in simple terms . The advantage of this stretegy if returns are high then you will get your 1 crores early and returns are low then get you better then FD returns .
Not a bad idea man, you could have described more with some instances, still, the idea of continuous review definitely adds some value.
But it would be of no use, if you are financially disciplined. I mean, you anyway would keep track on continuous basis and keep evaluating with other schemes. Even if it's 10yrs scheme, you can discontinue it anyways, if the fund is doing bad.
Although I am not a finance person I understand the following- 1.Mutual fund scheme can be open or close ended.One can withdraw his fund anytime by periodic review. Is there any necessity to go for a 10 years committed fund? 2.My children's education, marriage, buying a house are planned activities-what is the need of reviewing SIP 6 monthly by linking these? 3. SIP statements can be reviewed online-why should the agennt come to me frequently -for gossiping? 4.Most funds have the option of sweeping from Debt to Equity and vice-versa-short term has no special effect
Lousy article. No examples at all. What does the author mean, when he says "review every six months". What to do if NAV is low? What to do if NAV is up? And to top it all, the first slide says, once you finish reading the article you will be convinced about short term SIP. Well the author may be clear in his mind, but it does not come across.
