Dont Discontinue your SIP’s

Businessman Watching Timer

Few days back we wrote about the state of India economy and the bad phase our economy is undergoing. The impact of it is very evident by the way stock markets have been performing especially the equity funds. There is a wave of withdrawal in the markets and people are closing their SIP’s in a rush.

If we talk of SIP’s – SIP as a mode of investment helps in two ways.

  1. It enables you to save month on month and these regular savings helps to accumulate money over a period of time.
  2. SIP in equities also helps in Rupee Cost Averaging i.e. where we buy less units when markets are high and more units when the markets are low. This not only helps to reduce your purchasing cost but also give returns in long run.

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Current Environment for Real Estate

Model home sinking in water

It is true that 90% of the wealth is with 10% of the population and 10% wealth is with 90% of the population. But when 90% of the population starts thinking in same direction and think that by investing in any one asset class can make them rich overnight, that’s where bubble formation takes place. Presently, real estate is at similar crossroads.

Real Estate has been the most favorite asset class and most fruitful asset class in last 10 years. But that’s history. Unfortunately that will not be the case for next 10 years. To us real estate is entering a bear phase and real estate investors will have a tough time. Continue reading