When you are investing in tax and getting the help of a mutual funds salesman, do not get blinded by all his words. There would be salesmen who will be entirely against the concept of Systematic Investment Plan (SIP). They would keep on ranting about the drawbacks of SIP. They are anti- SIP agents. The logic of these salesmen behind SIPs is that the plan is only suitable when there is no time and the market is not doing well.
So, don’t let the down-selling salesman lure you away from the mutual fund SIPs. Yes, sometimes the market does not do well, but that does not mean the situation will continue like this. If the market does well, and you start investing through SIP, there may be fewer returns, but it is safe. When the market does not do well, then SIP provides/offers extra benefits from it.
Sometimes it may confuse you to either trust the salesman from a known bank or do proper research upon the mutual funds through SIP. So just to be cautious gather as much as information about what SIPs are, and talk to your neighbours or someone who you know.
When a SIP starts, the investment is made at a small scale, i.e., the investment is done weekly or monthly resulting in a small commission for the salesman. A significant investment leads to a high commission to the salesman; this is the only reason why the salesman lures you away from the mutual fund. A SIP is always safe and an intelligent move for paying taxes. Always choose wisely and after thorough research.
To know more about the concept and to get a clear picture of it, research some well-known forums. Thus, to find out more about mutual funds and SIPs, you may refer to https://economictimes.indiatimes.com/wealth/invest/dont-let-the-down-selling-salesman-lure-you-away-from-mutual-fund-sips/articleshow/61506137.cms.
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