Investment: Patience

Once we have invested and set an investment goal, we must stick to our plan. Stopping a SIP and withdrawing an investment suddenly would not make us successful in investments.

Problem is not with the investment which will give the fixed return but with the investment which has uncertain return.

Investing is like planting a seed and watering it regularly. We must give it the required time to grow. This is really the hard work for the investors. Many investors fail in investment as they quit investing when they see the things are going as they have planned.

If we have planned well, selected well and invested or investing well, all we need is have patience. 

Investment: SIP & Lumpsum

We have two modes of investment.
1) SIP
2) Lumpsum

SIP or Systematic investment plan is investing a certain amount for a period of time. If we invest Rs. 1000 for 40 years @ 13%, we can expect the investment value above 1 crore. Here the invested amount is Rs. 480000.

Lumpsum is one time investment for a period of time. If we invest Rs. 100000 for 40 years @ 13%, our investments will grow above 1 Crore. Here the investment amount remains the same - Rs. 1 lakh.

In the investment type where the return is uncertain, SIP mode will be the best option to invest. ln mutual fund we can buy more units when the market is not performing well.