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SIP - Please don't do SIP's ! | SIP नहीं है सही? | MUST WATCH FOR MUTUAL FUNDS SIP INVESTORS | - YouTube
Channel: Invest Aaj For Kal
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SIPs are not good. Many
of you will say, Anant
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SIPs are your favourite
mode of investment.
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Why are you against SIP?
Because every investment mode
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has its IFs and BUTs. We must
decide with everything in mind.
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Is this mode good for me or not?
We talk in detail in this video.
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Nowadays, the Market is at its ATH.
All new investors that are coming,
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they are being shown the last 1-3 years
of SIP return. Even of last 5 years.
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Since the market has rallied in last 1
year, all returns are attractive.
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All investors are thinking that
they have missed a big opportunity.
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People are made to do new SIPs
by showing that opportunity.
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In this video with data, with
fact, with psychological reasons,
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with each point in mind,
we'll understand
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how to use SIP as an
investmnet mode.
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Which is one of the
best investment mode.
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But it has its IFs and BUTs.
How should we use it?
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Which qualities are required
if we want to earn money by SIP.
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We'll discuss this in detail.
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And many IFs and BUTs, that
you had never heard before.
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Some pointers that every SIP
investor must understand, know,
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and identify. To make sure he
understands them is very important.
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We'll cover all
that in this video.
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My name is Anant Ladha
CFA, CA, CFP, LL.B
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Before we start this video.
Open for All channel,
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is available on Telegram
as Invest Aaj For Kal.
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This is its screenshot.
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Today's video will be very important
every mutual fund and SIP investor.
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Let's start.
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[Intro Music]
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Two qualities that are important
for every SIP investor are,
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we'll understand them first
then psychological pointers.
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Then real-life data. It's not that
we'll only take data of good times.
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We'll crunch data of both good and
bad times, of which I'm very sure,
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you wouldn't have done before. We'll
analyze data of many mutual funds.
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Then we'll figure out which type
of investors should avoid SIP mode
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and which one should use
SIP as an investment mode.
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Let's start with the first quality.
Look, whenever you invest in SIP.
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The first important quality is having
patience. Assume you started gymming,
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started exercising. Will you get 6
pack figure after the first day itself?
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I'm very sure, No. You'll have to
exercise regularly with patience.
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2nd important point: Consistency.
You'll have to have patience, but
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consistent efforts will be needed.
What's the meaning of this?
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There is a very famous
dialogue of Bruce Lee.
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He says he doesn't fear an opponent
who has practised 10,000 kicks once,
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but he fears an opponent who has
practised one kick 10,000 times.
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Because he'll have perfection
in that particular kick.
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Consistency is going to be
the most important factor.
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Let's understand using a
psychological example.
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Suppose that you have
planted a bamboo tree.
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Bamboo tree is the world's tallest
grassroot. You all know this.
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It takes 5 years and 3 months to
grow. It grows almost up to 90 FT.
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You planted it today. You
nurtured it perfectly.
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You gave water regularly for 1
month, 2, 3, 6 months.
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You watered it for 1 year. Regularly
nurtured the bamboo tree plant due to
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which its height will be 90 FT.
in 5 years and 3 months.
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Try to imagine its height after 1 year.
Do the normal mathematical calculation
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According to normal mathematical
the calculation, it should be 15-20 FT.
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We have to reach 90 FT. It should
grow at least 15-20 FT in a year.
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Do you know the reality? After 1 year
your bamboo tree's height will be 0.
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Imagine that you made efforts for
1 year and you get height as 0.
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You tried again for 1 year.
You made efforts in the 2nd year.
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After 2 years your bamboo
tree's height will be 0.
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You tried for the 3rd year.
Anant says to have strength
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and patience. You kept
patience for the 3rd year.
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After 3 years, your bamboo tree's
height will be 1-2 inches.
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Not Foot but Inch. Imagine after 3 years
of work, its height is only 1-2 inches.
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After 5 years 3 months, it is 90 FT.
But now, you'll know not to trust it.
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You'll think it has to reach 90 FT.
It is just 1-2 inches after 3 years.
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What's this happening? Imagine it.
It remains the same after 4 years.
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After 5 years it remains the same.
You think, my 5 years are now a waste.
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Now, at least I should remove it.
Another plant can grow here.
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But you know that after 5
years, magic will happen.
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Between 5 years 1 day
to 5 years 3 months,
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In these 90 days, the bamboo tree's
height will go from almost 0 to 90 FT.
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Think about it. For 5 years it is
almost 0 but in the next 90 days,
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magic happens and the height reaches 90 FT.
and it becomes the world's tallest grass.
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Think about what happens in 5 years.
The tree doesn't grow in the first 5 years.
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What happens in those 5 years.
I am sure many of you got it.
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In those 5 years, roots of that
the plant was getting stronger.
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Roots after expanding for 5 years,
In 3 months, we can see the growth
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, which is the bamboo tree. In
real life, SIP is also like this.
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Mark my words, you'll get very
good results in first 1-3 years.
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Just like new investors
are getting now.
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In the long term, your starting
the journey is going to be painful.
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Actual after will be after 5 years,
for the next 90 days after 5 years.
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You'll need to have patience.
We'll try to take 2 examples.
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Now we're taking
hypothetical example.
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After which we'll take
real-life examples.
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Stay alert till the
end of this video.
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The first example, Suppose you
did a SIP of Rs 10,000.
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Your SIP will grow at a flat
12% rate. Think about it.
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The first example is of your SIP of
Rs 10,000 which will be at the rate of 12%.
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Before that, remember that
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height of the bamboo tree is
the return of wealth creation.
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Roots are very important
for the first 5 years.
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These are going to your units. In first
example, you have to invest Rs 10,000 pm
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Here, you'll get a flat return of 12%.
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When you invested Rs 10,000 pm for
6 years. It will almost double by then.
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If your mutual fund's value was Rs 10.
It will be Rs 20 with the data you have.
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If you invested for 6 years
with flat returns of 12%.
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Your emotion is completely free.
You don't need to worry.
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Emotionally it's good but
actually, it's not good.
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Because You have invested for 6
years but its price is increasing.
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Your roots are now less deep. You
are getting fewer units with time.
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When you'll calculate your
total units after 6 years.
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You'll have 52,488 units
in this first case.
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Lets' talk about 2nd case. In life,
you'll mostly get this case.
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What will be in 2nd case? Your
invested MF has a NAV of Rs 10.
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For the first 5 years, your NAV
remains the same. It just fluctuates.
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In last 6 months or 1 year,
actual bounce comes.
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An example is in front of you.
You can calculate.
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In real life, mostly this happens.
What will happen in this case?
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For the first 5 years, you'll think
that I should have invested in RT.
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Should have paid my EMIs. My
money got wasted for 5 years.
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Anant says that you'll get good
returns after 5 years in SIP.
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It has been 5 years.
I should now stop SIP.
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It has been 3 years.
I should now stop SIP.
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I am devastated. I am not
getting any returns.
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But let's talk about total roots.
You'll have 68,490 units after 6 years.
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16,000 more than before. If
we talk about fund's value,
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In 1st case, you'll get Rs 10.26
Lakh for your investment of Rs 7.2 Lakh.
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In the 2nd case, you'll get Rs 13.38 Lakh
for your investment of Rs 7.2 Lakh.
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You can see 2nd path is difficult.
2nd path is realistic.
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You'll get the 2nd path whenever you
invest in Mutual Funds through SIPs.
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So, the results that you are being shown
of last 2-3 years are completely false.
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If you investing in SIP to get
good returns in next 1-3 years,
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and after 3 years, you'll take
out your money from the market.
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It is completely wrong. If you
are doing SIP with this mindset,
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then SIP is not for you. I'll
show you a live example.
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First I'll show you
chart of SEPT 2010.
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If any investor had
invested in SEPT 2010,
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in SIP for 3 years.
In all good funds.
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I took the best funds of that time.
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You can check out the complete
data. All were the best funds.
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As you can see, after 3 years
returns were almost negligible.
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Same as root developed
for 3 years in a bamboo tree,
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here also you have units
which are similar to roots,
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It will give huge returns
in future, but
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But we have to understand that
returns were negative for 3 years.
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Most of the investors had stopped
doing SIPs during 2010-2013.
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I'm trying to tell you my
personal experience.
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If at that time, If I had told
investors to give some more time,
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It is a bamboo tree.
It will grow automatically.
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At that time, they wouldn't have
believed me because of low returns.
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I have made this video today because
nowadays you're getting good returns.
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You can understand all the logical
things being emotion-free.
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You can check out that
returns were negative or 0.
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DSP equity fund whose name is now
DSP Flexi fund, its return was -5%
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Best fund of that time,
DSP MIDCAP FUND was at -7%
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ICICI MULTI CAP FUND was not at
even 1%. You can check out others.
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If you stopped your SIP or
redeemed it after 3 years,
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You booked your temporary
negative returns.
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You have gone home with
negative returns.
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What happened? If you had
continued that SIP till now,
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you can check out this data. I
have taken figures up to MAY 2020.
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When NIFTY was not even above 10,000.
You check out returns of that time.
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Genuinely, if these were active till
now, all would have return above 17%
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Why did I take May's data?
Because you'll say,
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what's the difference between you and them
if you show good figures of recent times.
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That's why I took nominal figures.
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I took March's figure
when the market was down
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and today's figure too,
where everything is good.
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May can be said to be neutral. We can
say everything was in trouble in May.
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Nifty was below 10,000 in May.
You can check that data here.
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It's not the only one. There'll be
more examples for you ahead.
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If someone had started SIP in 2008.
Next year he had negative returns.
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It was from -40% to -60%.
You can check it out here.
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What happened in 3 years? Every good
fund SIP had a return of 20-25%
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In 10 years it was 15-17%. Even after
knowing the pain in starting of 2008.
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1st year you'll have great pain.
It's not only about 2008.
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It was a time of crisis that's
why. Let's take other examples.
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If someone started SIP in NOV 2010.
Returns of 1st year were negative.
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You can check it out here.
It was from -4% to -10%.
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But, What happened after?
Everything is just in front of you.
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If SIP was continued for the next 10
years then returns reached up to 17%.
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If someone invested in JAN 2015.
1-year return was 10-15% down.
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If he kept investing for 3-5 years.
Returns again reached above 15%.
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If I talk about recent times.
If someone started SIP in 2018.
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Its return in 2020, even till
JUNE was sure negative or low.
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Meaning? You should not invest in
SIP by looking at the last 1 years' returns.
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SIP is not for you. SIP must
be planned for a minimum of 5 years.
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I am not telling you that you'll
get good returns after 5 years.
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It's minimum. If your time duration
is 5,10,15, or 20 years,
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Then SIP is the best option for you.
Here, I am talking about equity SIP.
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I'll get a question here, Anant, you are
in connection with the market so much.
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You main Anant Ka Funda daily. You
make videos and track the market daily.
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We know that you know
about the market.
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When you knew that market
was at its top in 2008.
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Or whenever it was
at top 2010 or 2015.
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and SIP returns of next year will be
low. Then why did you made us do SIP?
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You should have said that as
you know about the market.
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You should have stopped us. Don't do
SIP. Pause now and do it next year.
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Why didn't you stopped us?
Why did you say to do SIP?
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Before I answer this, If
you want to join our team,
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MF, Insurance, Health Insurance,
Term Insurance. Every important link
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and numbers are in the description.
If you don't have DEMAT.
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DEMAT Account opening
links are in description.
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You can consider a private channel
membership or Join button membership.
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All important links are
present in the description.
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What's the answer to this?
The answer is complete data.
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Let's go back to data
and discuss in detail.
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Here you'll have interesting data.
Suppose someone invested in the 2008 peak.
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When the market was high VS A investor
who started in SIP in MARCH 2009.
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At this time market was at the bottom.
One investor started at an extreme high.
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Other at the bottom. What'll be the
difference of returns of them?
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If there was a gap of 2 years,
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then difference between
returns would be huge.
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But here time is less. If time
is less, you have to make sure,
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that you invest at the correct time.
It's important in the case of SIP.
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If we see returns and data of 2013.
Data is in front of you.
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Names of funds/schemes are in front
of you. You can check them out.
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You can see that there is
not much difference in 2015.
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There are minor ones, but
not that big to notice.
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If you see data for 2020, Again I
have not taken data till today.
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I have taken data till May, because
it was a time of distress back then.
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If I take today's data, you'll say,
Anant, Everything is well nowadays.
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That's why I have taken data when
everything was not so good.
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You can see that peak investments
are also giving good returns.
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There are not huge returns, whether
you invest at peak or bottom.
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2 important qualities are important in SIP,
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About which we had talked about.
Patience and Consistency.
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You should be ready to see bamboo
tree with 0 height in first 5 years.
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You get afraid and redeem it after
5 years, then don't invest at first.
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Because when have invested for 5 years,
you staked FD returns on it too.
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At that time, you'll have dissatisfaction.
Anant, I should have cleared my EMIs.
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I got no returns in 5 years. If your
time horizon is below 5 years,
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then equity MF SIP is not for you.
You should avoid it 100%.
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You should continue with Debt product
or FD. Have faith in my words.
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If you invested by seeing the last 1 or 3
year returns. The probability will be that
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you are dissatisfied after 3 years.
Don't tell me afterwards that,
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"Anant, you didn't tell us that we
should be in for a minimum of 5 years."
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Today, Equity SIP is
one of the best options.
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Provided that you have a time
the horizon of a minimum of 5 years.
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Don't need to ask
for 7, 10, or 15 years.
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The patience of 7, 10, or 15 years that I'm
saying for MF SIP is completely true.
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It's not the same to buy and
forget a direct equity share.
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Equity MF and Shares are different things.
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We need to deal with them differently.
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I hope, you are regularly
connected with this channel,
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You must know the difference and
the ways to deal with them differently.
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If you liked this video. Don't
forget to go without liking it.
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Don't forget to
subscribe to the channel.
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I'm very sure that the data
and analysis in this video
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was never before anywhere. Don't
forget to share with friends.
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Every important link,
whether it's a DEMAT account,
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or You want help from
our team in MF investing.
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Every important link and numbers
are present in the description.
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Happy Investing and
I'll see you very soon.
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