SIP Investment Strategy

After securing insurance, individuals should initiate investments through SIPs with their savings.

During market downturns, continue with existing SIPs. Additionally, incrementally increase SIP amounts each succeeding year to benefit from compounded growth.

For lump-sum investments made now, it's advisable to deploy the money in three tranches. Invest one tranche, and if the market corrects further, invest another, and then a third. This approach averages out the purchase cost and reduces the impact cost compared to investing the entire sum at once.

It is advised to continue with SIP investments without pausing, as falling markets present an opportunity to average costs at lower prices.

Falling markets are considered an opportune time for Systematic Investment Plans (SIPs) as they allow for averaging at lower prices.

The speaker strongly advises against stopping or pausing Systematic Investment Plans (SIPs) during market downturns, as falling markets present an opportunity to average investments at lower prices, which is mathematically beneficial for long-term wealth creation.

For new investors, considering an index fund for SIP is recommended over investing in a specific stock's SIP.