Latest news with #Mehan
India Today
12-08-2025
- Business
- India Today
5 SIP myths that hurt investors more than markets, explains stock market expert
It's not always market crashes or economic slowdowns that cause the most damage to investors. Often, it's the quiet and convincing myths about investing that do the real investor and stock market expert, Rajnish Mehan puts it, 'Markets don't hurt investors half as much as myths they don't announce themselves.'He further wrote on LinkedIn, 'They look safe. They sound logical. They echo what everyone says. They validate what you want to believe.' advertisementAccording to him, these myths don't just harm your returns, they can influence your behaviour in ways that quietly derail compounding. 'The real damage shows up when you stop SIPs too early, when you chase returns too late, or when you trust strategies you never understood fully,' he says. One reason myths are so powerful is because repetition makes them feel true. We tend to trust ideas we've heard over and over, even if they aren't backed by facts. But in investing, what feels natural isn't always what's right.'When something is repeated often enough, it feels true,' Mehan says. 'But what's natural isn't always what's right.'To help investors recognise these traps, he has identified five of the most common myths about Systematic Investment Plans (SIPs), from the belief that SIPs always yield profits, never incur losses, can be started or stopped anytime without impact, to assuming they're only for small investors or that one SIP alone is advice is simple: examine your own portfolio and check if any of these myths are still influencing your decisions. Because, as he reminds us, 'In investing, the myths you believe matter more than the markets you face.'(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
India Today
07-08-2025
- Business
- India Today
Why STP and SWP matter more than SIP, explains stock market expert
When it comes to investing, most people have heard of SIPs (Systematic Investment Plans). They're easy to set up, simple to explain, and popular among new investors. But according to investor and stock market expert, Rajnish Mehan, it's not just the SIP that matters. It's the other two tools, STP (Systematic Transfer Plans) and SWP (Systematic Withdrawal Plans), that can quietly define your financial wrote on LinkedIn, 'In investing, the first and the last step often decide the whole journey. That's why STP and SWP matter more than most investors realise.' WHAT IS STP?STP is designed for situations where you have a large amount of money, say, from a fixed deposit maturity or property sale, but don't want to put it all in the market at once. The idea is to spread the risk by moving the amount gradually from a low-risk fund to equity. For instance, let's say your fixed deposit of Rs 10 lakh matures. Instead of investing the entire sum into equity funds in one go, you could park it in a liquid or debt fund and set up an STP. This way, around Rs 83,333 is transferred each month into an equity fund over a 12-month explains, 'STP builds discipline at the point of entry.' This approach protects you from investing everything during a market high, giving your money a better chance to grow ABOUT SWP?On the other end of the investment journey lies the SWP. This is more about creating a steady, reliable income, especially useful for retirees. Instead of withdrawing the entire investment, you set up fixed monthly withdrawals while the rest of your corpus stays say someone has a retirement corpus of Rs 1 crore. By setting up an SWP of Rs 50,000 a month, they get Rs 6 lakh a year in predictable income, while the rest of the money remains invested and continues to generate returns.'The purpose here is not growth, but predictable income,' Mehan points out. 'SWP builds sustainability at the point of exit.'TAX RULES TO KEEP IN MINDBoth STP and SWP come with their own tax rules. For STP, each monthly transfer is treated as a redemption from the original debt or liquid fund. So every time money is moved, there's a tax event, and the gains are taxed as per your income slab, no matter how long the money has stayed in the works a bit differently. Each withdrawal includes both the capital and the gains. Tax applies only to the gains, and the rate depends on how long you've held the investment. For equity funds, if the units withdrawn have been held for over a year, gains beyond Rs 1.25 lakh are taxed at 12.5% under long-term capital gains (LTCG).Mehan cautions that 'the nuance lies in how these cash flows interact with your long-term plan, not just in the headline tax rate.'WHY BOTH TOOLS MATTERSIPs help you enter the world of investing. But STPs and SWPs help you navigate it wisely, especially when you have a big lump sum to invest or need steady income without eating into your entire savings.'Together,' Mehan sums up, 'they complete the investing cycle. Because in the end, investing is about building a structure where money works for you when you need growth, and supports you when you need pension.'- EndsMust Watch
India Today
25-06-2025
- Business
- India Today
Want SIP success? Do this every month, says stock market expert
The idea that small, regular investments can lead to big wealth sounds like a simple plan, especially when shown in colourful charts. However, in real life, things aren't that and stock market expert, Rajnish Mehan, wrote on LinkedIn, 'Rs 500 a month yeilds Rs 27.8 lakhs, Rs 50,000 a month yields Rs 27.78 crores. Looks like simple math but what's rarely shown is the human side of that equation. Because SIP calculators may project numbers. But they don't account for fear, doubt, or life.' advertisementHe mentioned that while SIP calculators do a fine job of showing projections, they don't account for emotions, self-doubt, or the unpredictability of mention said, 'Every advisor shares this chart at some point.' How a small monthly investment, done consistently over 30 years, could help you retire rich. What they don't show is what happens in between. Life doesn't move in straight lines like SIP charts. In the real world, people face sudden job losses or unexpected health problems, etc. Sometimes, markets crash and wipe out months of gains, or investors feel disheartened when Rs 500 becomes just Rs 610 after a year. Mehan said that these moments are when most people quit.'That's where most investors give up not because SIPs don't work but because patience is harder than maths,' he real journey of wealth-building through SIPs is not about picking the right mutual fund or chasing high returns. It's about the quiet decision you make every single month, to stay invested. As Mehan rightly puts it, 'It's not the Rs 10,000 SIP that builds wealth. It's 360 decisions, one every month, to continue it, especially when you don't feel like it.'When markets are uncertain, it's common for individuals to consider halting their SIPs. Yet, history shows that those who continue investing consistently, even during tough times, often achieve better financial outcomes. They allow their investments, and their discipline, to compound over further mentioned, 'Because the 14% CAGR doesn't come from markets. It comes from behaviour within markets.' In other words, how you act during ups and downs matters more than what the market concluded by saying, 'And returns compound on paper. But real wealth compounds in patience.'- EndsMust Watch
