Why do you withdraw from a SIP investment?
1. For fear of losses
- Shift to fixed income products.
2. For profit-booking
- Rebalance portfolio to the debt-equity ratio originally envisaged.
3. For liquidating bad fund
- Start SIP in a better fund.
4. For an emergency
- Keep a contingency amount in a liquid or ultrashort term fund, or withdraw only as required.
5. For goal amount reached
- Fulfil the goal immediately.
6. For "timing" the market
- Never do it with SIPs.
7. For "playing" market cycles
- Earmark a small fixed amount separately to meet that urge.
8. For indecision
- Ask same question again, instead of weakening the compounding power of a disciplined SIP investment.
1. For fear of losses
- Shift to fixed income products.
2. For profit-booking
- Rebalance portfolio to the debt-equity ratio originally envisaged.
3. For liquidating bad fund
- Start SIP in a better fund.
4. For an emergency
- Keep a contingency amount in a liquid or ultrashort term fund, or withdraw only as required.
5. For goal amount reached
- Fulfil the goal immediately.
6. For "timing" the market
- Never do it with SIPs.
7. For "playing" market cycles
- Earmark a small fixed amount separately to meet that urge.
8. For indecision
- Ask same question again, instead of weakening the compounding power of a disciplined SIP investment.