Passive Investing makes a lot of sense
We have discussed a number of times in our blog that Systematic Investment Plans is the ideal way of investing for your long term goals. An important factor in wealth creation is investment tenure due to power of compounding over time. Longer your investment tenure, greater is the effect of compounding. Mutual fund SIPs enable you to start investing small amounts from your regular savings. Over long investment tenures, SIPs can help you accumulate wealth needed for your different life-stage goals. Mutual fund SIPs have become one of the most popular investment vehicles for retail investors. As per AMFI data more than Rs 1 lakh Crores was invested through SIP is FY 2019-20; total SIP investments in the first three quarters of this fiscal year stood Rs 71,349 Crores. Most of the SIPs in India are made in actively managed equity mutual fund schemes. Over the last few years, passive funds like Exchange Traded Funds (ETFs) and Index Funds have been slowly gaining traction in India. The C...