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Why so many Investors withdraw their money after 5 years of completion of SIP

There are so many Investors who withdraws their money after 5yrs completion of SIP and again open SIP for another 5yrs as Returns More than PO R/D. But unable to convince them to stay?

Jul 25, 2016 by Sanjib,   |   Mutual Fund

As an advisor, we think, it is your duty to hand hold the investor to keep him stay invested in SIPs for the long term. Our understanding is that mostly the advisors suggest doing SIPs for 5 years and therefore the investor does that and redeems after 5 year. Only if it has performed well that the investor will again renew it for further 5 years or so.

The best way to stop this and also to give some direction to the investors, the advisors should link the SIPs with investors future financial goals like - higher education, children's marriage, retirement planning or simply wealth creation with a target amount in mind. Once you are able to do that, most of the investors will stick to it till such time the goals are achieved. However, you should review the performance of the SIPs at least once every year to check if these are aligned to their respective goals or not?

This is the only way and best way to keep the investors stay invested objectively with their SIPs.

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