SIP Myths Debunked

 


There are several myths surrounding SIP, which need to be addressed.

"SIP Guarantees Profits"

Profitability is not guaranteed by SIP, which is susceptible to market risks. In the long run, nevertheless, it lessens the effect of market volatility.

 "SIP is Only for Long-Term Investors"

SIP can be utilized for short-term financial goals with the right fund selection, albeit it does perform best over the long run.

Planning taxes and SIP

SIP provides investors with tax advantages, making it a desirable choice for tax planning.

Tax Benefits of SIP Investments Under Section 80C of the Income Tax Act, certain mutual fund schemes, such as Equity Linked Savings Schemes (ELSS), provide tax deductions.

ELSS Funds to Reduce Taxes

In comparison to conventional tax-saving vehicles, ELSS funds not only provide tax advantages but also have the potential for higher returns.


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