1. If you stop SIPs several years before your requirement, you're depriving your savings from compounding during those years, as it would be lying idle in your bank or in your liquid fund.
2. As your corpus has been compounding for several years, a comparatively lesser return on your last few years' investments would get averaged more favourably than putting them in debt funds for a longer period without any growth.
3. Your investment through SIPs should ideally be perpetual in nature, for meeting all goals in a systematic time-bound manner, including retirement goals, in order to optimize compounding of each investment with a longer tenure.
4. It's always better to ladder your investment perpetually in equity funds through SIPs rather than laddering them in fixed deposits or debt funds, which are not inflation-friendly, as the difference in the long-term of 15-20 years is too huge to ignore, ranging between 8-15% CAGR, for various categories of funds.
5. However, perpetual SIPs requires perpetual faith in long-term Equity funds despite natural volatility during several market cycles.
6. The power of compounding, which increases Rs.5,000 monthly SIP for 35 years (i.e. investment of 21 lakhs) to a mammoth corpus of Rs.2.75 crore (at even 12% CAGR), is a powerful tool to make your hard-earned money work harder for you, for meeting all your goals one by one.
7. Whenever any fear factor emerges, your systematic withdrawal periods can always be adjusted/increased while continuing your perpetual long-term SIPs.
8. If your 15-yr SIP is in a Balanced Equity fund, due to its auto-balancing nature, you could withdraw your actual lumpsum requirement during the 15th year through 12 monthly STPs, while continuing with its SIPs perpetually for creating a retirement corpus.
9. This could be done for a multicap too, with 24 monthly STPs.
10. For midcap and smallcap funds, your risk propensity should decide your comfort level of STPs, as well as your decision to continue SIPs.
11. If your 15-yr goal portfolio is comprising of funds from different fund houses, you could also SWP your required amount into a single flexi-deposit account of your bank too for convenience in ots usage.
2. As your corpus has been compounding for several years, a comparatively lesser return on your last few years' investments would get averaged more favourably than putting them in debt funds for a longer period without any growth.
3. Your investment through SIPs should ideally be perpetual in nature, for meeting all goals in a systematic time-bound manner, including retirement goals, in order to optimize compounding of each investment with a longer tenure.
4. It's always better to ladder your investment perpetually in equity funds through SIPs rather than laddering them in fixed deposits or debt funds, which are not inflation-friendly, as the difference in the long-term of 15-20 years is too huge to ignore, ranging between 8-15% CAGR, for various categories of funds.
5. However, perpetual SIPs requires perpetual faith in long-term Equity funds despite natural volatility during several market cycles.
6. The power of compounding, which increases Rs.5,000 monthly SIP for 35 years (i.e. investment of 21 lakhs) to a mammoth corpus of Rs.2.75 crore (at even 12% CAGR), is a powerful tool to make your hard-earned money work harder for you, for meeting all your goals one by one.
7. Whenever any fear factor emerges, your systematic withdrawal periods can always be adjusted/increased while continuing your perpetual long-term SIPs.
8. If your 15-yr SIP is in a Balanced Equity fund, due to its auto-balancing nature, you could withdraw your actual lumpsum requirement during the 15th year through 12 monthly STPs, while continuing with its SIPs perpetually for creating a retirement corpus.
9. This could be done for a multicap too, with 24 monthly STPs.
10. For midcap and smallcap funds, your risk propensity should decide your comfort level of STPs, as well as your decision to continue SIPs.
11. If your 15-yr goal portfolio is comprising of funds from different fund houses, you could also SWP your required amount into a single flexi-deposit account of your bank too for convenience in ots usage.