1. “However if your horizon is less than 5 years, you MUST do an SIP.”

    Height of stupidity! Go Read Benjamin Graham – the father of value investing – write about dollar cost averaging (today’s SIP) in 1949. The logic behind this investment plan is that you should buy more in a bear market, and less in a bull market – that is not get carried away in a bull market, and not to remain in the sidelines in a bear market. The implication is that you should have the conviction for equities or the portfolio (the fund that you are investing). Since the investment cycle is AT LEAST one bull cycle + one bear cycle, it would be greater than 10 years. And, Ben Graham & Warren Buffet are famous to take a minimum 30 year view. It’s simply ridiculous to suggest that SIP works for less than 5 years.

  2. aa whats your take? SIP works, does not work, can never work, …..? and what is the implication of that for a common man. If there is a conflict between Buffets writing and John Templeton’s writing, by the way, what should one do?

  3. aa i do not know what is stands for and I do not want to guess. Please take a stand and say that SIP does not work for 5 years – and then we can argue. If you say that equity works ONLY in 30 year kind of time frames, God save the brokers. If you say we should all be investing with a 30 year time frame, I am doomed. I am 38 years old and age 68 surely my son-in-law will look at my portfolio and say “No pop in law you got it all wrong” and then go an spend all my money! (BTW my daughter is 9 years old)

  4. aa’s comment seems to be funny. Yes of course equity is for the long run, so what to do? I think if SIP is a good way of investing it is good for both long run and short run is it not? SIP of mine which is 3 years old is currently out of money! I think by just continuing to do the SIPs one can improve the returns. If Aa is saying that only people with 20-30 years horizon should invest in equity shares (he may be right) he is talking to the wrong audience perhaps.

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