Cons
of
Investing
through
SIP
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1. Effort to Set Up
Setting up and maintaining a SIP can require effort, especially with limited financial resources.
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2.
Time-Intensive
Building a SIP takes longer than a lump-sum investment since it occurs in installments over time.
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3. Greater Risk
SIPs carry a risk of not achieving the same returns as a lump-sum investment, potentially leading to higher losses.
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4.
Less Flexibility
SIPs offer less flexibility in changing your investment strategy or exiting the market.
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5.
Potential Higher Costs
Unless using index funds, SIPs may have higher fees compared to direct investments in stocks and bonds.
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