Investment in SIP is a fabulous option provided investor is educated to invest for a long term, SIP in mutual funds have produced extraordinary performance when someone follows a disciplined approach, When someone gets rid of two psychological barriers of greed & fear, Both are harmful when someone is investing with a financial goal in his mind, I have been to many mutual fund company receptions I have been observing one trend, a redemption prior accomplishing goals, Few I had an opportunity to talk to said they have been investing from past 1 nd half to two years & didn’t see their investments grow & few explaining that they are smart enough to book profit & play safe

These people are to be educated, when you tend to invest towards a financial goal what happens to the market is immaterial to you from the point you start till the point you redeem, Have you ever met a person sitting at a life insurance office saying he wants to get rid off it, Well it’s locked!! When you have no other option & you know you will loose money by not paying premium you will continue to invest till the end of tenure, But interestingly people have a different perspective all together when it comes to SIP, it’s because it’s liquid and can fulfill short term obligations, In the process of addressing short term obligations you tend to liquidate, Liquidation itself is a curse for long term achievement of financial goals

*LAX on health insurance*

I am healthy let see when I have some Concern, Why buy health insurance now?? Well, let’s consider following scenario

Mr Raj is investing for next 15 years with a monthly SIP of 10k per month for his kid education as a goal

1st year value of his investment stands at 1.27 lakh

5th year it stands at 7.8 lakhs

5th year Raj had a major heart attack, Raj’s wife immediately borrowed money for Raj hospitalisation & promised to return back in a month of tigoal

Raj gets back home calls his mutual fund adviser and applies a partial redemption of 5 lakhs to repay the money borrowed by his wife, Raj struggles to pay his EMI for next 2-3 months and consumes the rest 2.8 lakhs

Raj’s kid education ambition is taken for a toss, *As an adviser when we position you a health insurance prior to your SIP we actually immune your investments*, Don’t always think of tangible benefits, Health expense dent cam shatter any goal

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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