Planning a Rs 1 crore+ corpus through SIPs? This financial advisor highlights a major flaw that can shatter your dream goal
Shrivastava warned that SIPs average out market entries, but this means they also invest during overvalued phases.
Synopsis Finfluencer Akshat Shrivastava questions the effectiveness of SIPs without a clear strategy, highlighting issues like investing in overvalued markets and lacking exit strategies. Financial advisor Manoj Arora counters that timing the market is difficult and suggests a diversified portfolio with rebalancing for better results. He emphasizes the challenges in predicting market movements. Systematic Investment Plans (SIPs) have become a preferred tool for long-term savings, including retirement goals of Rs1 crore or more. But finfluencer Akshat Shrivastava has questioned their effectiveness if investors do not follow a clear strategy. In a social media post, he explained why SIPs may not always deliver the returns investors expect.
ADVERTISEMENT Shrivastava warned that SIPs average out market entries, but this means they also invest during overvalued phases. He said a thoughtful entry point is key to long-term gains, and simply relying on SIPs can reduce profitability over time.
1. Entry point is critical
Buying a stock when it is undervalued increases the chances of good returns. While SIPs benefit from rupee-cost averaging, they also dilute gains by investing in expensive markets.
2. Stay invested for momentumOnce invested, investors need to remain in the market long enough to benefit from rising prices. Shrivastava said SIPs help maintain discipline but don't always take full advantage of strong rallies unless contributions are increased.
3. Exit strategy is missing
ADVERTISEMENT He noted that most retail investors fail to book profits at the right time. SIPs have no built-in mechanism to exit when markets are overvalued, which can lead to missed opportunities or losses during corrections.
4. Capital rotation is not possible According to Shrivastava, true wealth creation involves moving profits into better-performing sectors or assets. SIPs follow a static plan, which prevents dynamic allocation.
ADVERTISEMENT
Shrivastava added that relying only on SIPs offers no protection during market crashes like 2008 or 2020. He pointed to Japan and China as examples where markets stayed flat for years despite being large economies.However, another financial advisor Manoj Arora rejected the idea of timing the market and said that investing without understanding market cycles can be risky. He said many investors try to time the market—buying low and selling high—but end up doing the opposite due to emotional decisions.
ADVERTISEMENT "Most retail investors will lose more money trying to time the market (finding a good entry and exit point). For them, creating and then maintaining a balanced portfolio will be the only way to 'buy low and sell high'," Arora wrote in his post on X.Arora said even professionals find it difficult to time the market because economic data, global developments, and investor sentiment change constantly. He warned that missing the best-performing days in the market—many of which come after sharp declines—can reduce long-term returns.
ADVERTISEMENT Arora suggested that instead of timing the market, investors should focus on building a diversified portfolio across stocks, bonds, real estate, and cash. This approach reduces the impact of volatility and encourages systematic investing.
He added that rebalancing—selling assets that have gone up and buying those that haven't—automatically enforces the discipline of 'buying low and selling high,' something most investors fail to do on their own.
(You can now subscribe to our Economic Times WhatsApp channel)
Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.
NEXT STORY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
31 minutes ago
- Time of India
444 services unavailable on ‘aaple sarkar' portal despite digital push
1 2 3 4 5 Pune: Even though state govt continues to promote digitisation and time-bound delivery of public services under the Maharashtra Right to Public Service Act, 2015, a significant chunk — over 400 notified facilities — are yet to come on 'aaple sarkar RTS portal', data shows. Of the 1,027 services notified under the Act across 29 departments, only 583 are currently available online. The remaining 444 services continue to operate offline, defeating the very purpose of a seamless, transparent, and paperless system promised to people, officials said. Among the departments that are yet to completely switch to digital mode are animal husbandry, medical education and drugs, education, Nagpur Metropolitan Region Development Authority, Municipal Corporation of Greater Mumbai, state excise, and transport. "The deadline to digitise all notified services is Aug 15. However, we have urged all departments to speed up the process and integrate the services with the portal as soon as possible. Otherwise the services delivery cannot be tracked," a senior govt official said. Another official said people can either submit their application sitting at home or use the 40000 seva kendras across the state. However, citizen groups claim that many kendras are either non-functional or offer limited support, further weakening the last-mile delivery. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo "My daughter wanted her domicile certificate and despite trying to upload documents from home, we faced technical glitches," Meera Mohan, a home maker, said. Kartika K, a medical student, had to approach a kendra or citizen facilitation centre to apply for income generation certificate. "While some services are online, there are many departments that have not uploaded the services." Recently, chief minister Devendra Fadnavis set Aug 15 as the deadline for full digitisation, warning that non-compliance would attract Rs1,000 in fine per day for each offline service. Amendment planned State govt is mulling an amendment to the RTS Act to introduce compensation for people affected by delays in services delivery, officials said. The proposed clause, based on the model practised in Haryana, would hold officials accountable and ensure applicats are reimbursed for missed deadlines. An automatic escalation of unresolved cases is also under review. Since the Act came into effect in 2015, state has processed 18.89 crore service requests, with 17.79 crore resolved, data shows. Initiatives like 'Sevadhoot', a doorstep delivery programme, have gained traction statewide, underscoring the public's growing demand for accessible, tech-enabled governance. This will be replicated across Maharashtra, officials said.
Hans India
20 hours ago
- Hans India
Bharti Hexacom shares fall 3.5% after Motilal Oswal downgrade
Mumbai: Bharti Hexacom's shares dropped over 3.5 per cent to Rs1,810 on Friday during the intra-day trading session on the National Stock Exchange (NSE), after brokerage firm Motilal Oswal downgraded the stock from a 'Buy' to a 'Neutral' rating and set a target price of Rs1,900. The brokerage said the downgrade was mainly due to the stock's high valuation, which is currently around 40 per cent more expensive than Bharti Airtel. 'Risk-reward no longer attractive; downgrade to Neutral,' said the brokerage. Motilal Oswal believes this makes the risk-reward profile less attractive for investors, even though the company continues to show strong performance and growth through premium services. It expects Bharti Hexacom to become debt-free (excluding lease liabilities) by the financial year 2027. The brokerage also predicts that the company's dividend will rise from Rs10 per share in FY25 to Rs30 per share by FY27. The average revenue per user (ARPU) is expected to go up from Rs242 in FY25 to Rs284 by FY27, supported by a likely tariff hike in December 2025. Beyond FY28, the brokerage expects ARPU to grow at a slower rate of 5.5 per cent annually, while overall revenue and EBITDA growth may settle around 7 per cent. However, the firm added that any significant boost in valuation will depend on ARPU growing faster than expected. Motilal Oswal also flagged some concerns. Bharti Hexacom's operations are concentrated in a few telecom circles, which could limit further growth. Additionally, the government still holds a 15 per cent stake in the company, and this is seen as a risk factor -- especially because the government lacks board representation and had earlier raised objections related to the Indus Towers deal, the brokerage said. The brokerage also mentioned that any potential corporate moves, such as stake sales, could put pressure on the stock's valuation. It further warned that a possible merger with Bharti Airtel could be risky, especially if the share swap ratio turns out to be unfavourable due to Bharti Hexacom's current high valuation. Around 12:45 pm on Friday, Bharti Hexacom was trading at Rs1,810, down about 3.62 per cent or Rs68. The stock has still gained 24 per cent so far this year and has jumped 74 per cent over the past 12 months.
Time of India
a day ago
- Time of India
MSRDC wants to make Mum-Pune E-way 10-lane superhighway
Pune: MSRDC wants to transform the Mumbai-Pune Expressway into a 10-lane superhighway to tide over traffic snarls and cater to the future demands of vehicular movement along the corridor, one of the busiest in the country. "This is an upgrade from our earlier proposal to make the expressway an eight-lane facility. The latest upgrade will cost around Rs1,420 crore. The DPR is being finalised and will be submitted to govt for approval," Maharashtra State Road Development Corporation (MSRDC) vice-chairman and managing director Anilkumar Gaikwad told TOI on Friday. Inaugurated in 2002, the expressway is a 94.6-km stretch connecting the bustling metropolis of Mumbai to Pune, Maharashtra's industrial and educational hub. It currently carries an estimated 65,000 vehicles daily during weekdays. The number increases to over 100,000 during weekends. With traffic volume increasing by approximately 5-6% on a year-on-year basis, the MSRDC's proposed expansion is seen as a long-term solution to the congestion. The latest project involves widening of the current infrastructure. While the construction cost is expected to be around Rs8,440 crore, the overall average cost of the project will be Rs 14,260 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรด Bitcoin และ Ethereum - ไม่ต้องใช้กระเป๋าเงิน! IC Markets เริ่มต้นตอนนี้ Undo "Instead of seeking funds from govt, we will bank on toll collection," Gaikwad said. The financing model — whether Build-Operate-Transfer (BOT) or annuity — is yet to be decided. The current toll collection for the Pune-Mumbai Expressway is valid till 2045. MSRDC would seek an extension if the expressway widening gets approval to make the project self-sustaining. At present, the journey between Mumbai and Pune takes about two hours under normal conditions. However, weekend rush hours and holiday traffic can stretch that drive by an additional hour. According to MSRDC, the proposed expansion could virtually eliminate this extended travel time, offering smoother rides even during peak periods. If approved and executed as envisioned, the expansion could become one of India's most ambitious road infrastructure upgrades — a critical step toward matching the country's rapid growth in vehicle ownership with high-capacity transit corridors, an MSRDC official said. MLA Mahesh Landge has in a social media post recently said the expansion would ensure necessary respite from traffic congestion on the e-way. "This is a long-awaited demand. The expansion is needed considering the heavy traffic along the e-way," he told TOI. People frequently travelling on the e-way are of the view that the state govt should not delay in the expansion work and carry out the project in phases to ensure that there was no traffic congestion. "Frequent traffic snarls are becoming an impediment for travellers. The expansion proposal should be immediately cleared and work should commence," said Manisha Khandekar, a frequent traveller. The expressway — which begins at Kalamboli in Navi Mumbai and ends at Kiwale near Pune — is India's first access-controlled express highway. While work on the 13-km "missing link" project is on, which will facilitate 10 lanes in the Khandala Ghat section, the proposed expansion would cover the remaining 67km of the route. According to MSRDC, land acquisition challenges were expected to be minimal. "MSRDC already holds land adjacent to most parts of the existing expressway. Only limited additional land near tunnels will be needed. These land parcels are near the tunnel zones," said an official involved with the project. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
