The difference is in psychology!
- With a lumpsum investment every month, you have to make sure you remember to invest on a given date.
- If you are moody, stressed, out on a vacation, angry then likely that that months investment may not be made.
- What if there is panic in the markets? You may not invest thinking you might lose!
- What if there is euphoria in the markets? You may not invest thinking markets are expensive!
So there are many reasons why our behaviour is impacted due to various reasons. An SIP smoothens these out and makes sure that investments are regularly done from your bank account.
There is an excellent way to invest in SIP that gives both these options to you. [Disclosure: This feature is only available on the jama.co.in platform]
- Automatically debit SIP from your bank account each month.
- Pay as you go. You will get a payment link each month. So forgetting won’t be an issue. You can choose to pay or ignore it if you dont have funds.
And the best platforms can either use Net banking to register your SIP with the bank, or allow an OTP authorisation on your Aadhar linked bank account, without Net banking!
