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Should we continue SIPs or not ?

Discussion in 'Technical Analysis' started by rbathri, May 20, 2020.

  1. rbathri

    rbathri Member

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    Hi,

    I have been investing in direct MFs via SIP. MFs are spread across, largecap, multicap, smallcap and mid cap funds similar/based on what Shabbir analyzed beginning of every year. I am planning hold these MFs more than 3 to 5 years.

    There are some suggestions to move to debt funds now and then reinvest in equity. What is the right methodology ?

    * Continue SIP as it is
    * Stop the SIPs and wait for market to recover and then continue SIP
    * Migrate all the current equit MFs to debt funds and continue to SIP

    Let me know your thoughts.
     
    rbathri, May 20, 2020
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  2. rbathri

    rbathri Member

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    @shabbir This might be a great blog for lot of SIP investors
     
    rbathri, May 20, 2020
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  3. vinod_vatsa2003

    vinod_vatsa2003 Member

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    MY views are ( Considering you are in market for Long terms 8-10 Years)
    1) Continue the SIPS ( Investing at current values will certainly help in bringing average buy price lower.
    2) Since most of the Equity MF are in negative you may look at switching to better funds as the loss that you book will get compensated as you will be shifting to other MF at lower prices.
    3) If you have spare money for long term increase SIP.

    Present situation can not continue for long so recovery is eminent in next 2-3 years
    Regards
     
    vinod_vatsa2003, May 20, 2020
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  4. shabbir

    shabbir Administrator Staff Member

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    Keep investing simple. Equity and debt have no comparison. Right now debt looks good to you because you are comparing it wrongly.

    Can you share with me one debt fund in the last 5 years that has given better returns than a large cap fund?

    So if someone has shared the idea to move from equity to debt, he has no idea on what he is talking about. His only aim is to make most from your money move from funds to gain the commissions or atleast in hope that you don't go direct but regular. He only wants to align your current condition (bad returns) to suggest a switch. The better financial advisors should not be doing it.

    Instead of a post, lets do some calculations here only.

    Ask the same person what are the debt funds that has given better than equity returns in 5 years and we can discus how and what has made that decisions.

    Again, I am not in support of equity funds and I prefer stock because my returns are always better than funds. However, when comparing to debt, on any day, I will choose equity funds
     
    shabbir, May 21, 2020
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  5. shabbir

    shabbir Administrator Staff Member

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    Moreover, all people have very short lived memory of Franklin debt funds where all the money is stuck of the investors as well.
     
    shabbir, May 21, 2020
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