Which one to choose? High NAV or Cheap NAV

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What Is NAV and Why Does It Matter? Whenever you check the performance of a mutual fund or SIP, you’ve probably seen the term NAV .  But  ✍what exactly does it mean, and  ✍why do investors talk about it so much?  Understanding NAV is essential for making smart investment decisions—especially if you want to grow wealth confidently and avoid common beginner mistakes. You may also know๐Ÿ‘‡ ✍What Is NAV? NAV (Net Asset Value) is the per-unit value of a mutual fund or in other word say it is the price of one unit of a fund on any given day. When you invest in SIP/Mutul fund, you will get fixed numbers  of units(Decided by  NAV price of that day) ✍How NAV calculated? It is calculated using a simple formula: NAV = (Total Assets – Total Liabilities) ÷ Number of Units  Every business day, after the market closes, AMCs calculate and publish updated NAVs for each scheme. ✍Does a Higher or Lower NAV Mean Better Returns? One of the biggest misconceptions among n...
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What is the Difference in Direct and Regular SIP?







Direct vs Regular SIP, which is better?


 ๐Ÿ‘‰when we fall sick, we consult Doctor.


๐Ÿ‘‰when we want to build home, we consult Mason.


๐Ÿ‘‰when we  need education,we consult teacher.


๐Ÿ‘‰when we have to repair TV, we consult electrician.


       Then

๐Ÿ”‘when time come to invest, WHY  don't we consult financial expert?


๐ŸŒ️‍♀️Wealth creation is not just about expense ratio.It is the BEHAVIOUR ratio-how you act in fear and greed.And behaviour is best handled by your trusted distributor ,  not by algorithm of an App.

Take an Example:

An investor started  Rs.5000 monthly SIP for 10 year without any expert guidance , after 5 year his total investment value including return  became Rs.5 lakh (Assuned).

Sudden market crashed and his investment  value went down 20% i.e Rs4 lakh. He got panic and withdraw his investment.
Here  two things happened:
1. Loss of money: He lost 20% of his investment.

2. Goal break: As he exited from investment so he also missed the goal for which he had started the SIP. 

Lets eloberate some facts

๐Ÿ”‘Financial expert speaks aloud that real wealth is created in long term, still people want to be rich early  for instant gratification and loss their hard earned money.

๐Ÿ”‘Hundreds or thousands of financial book reveals that real  winner in money making skill is one who control their emotion when market falls and panic situation arised.

 Still people do not take help of financial expert for better fund selection(Who also guides and motivates during panic situation)
and being overconfident they think themselves as a long term investor initially but repeates same mistake (Exit their investment  either in loss or with very less profit) in panic situation.

๐Ÿ”‘History has shown that small cap SIP/MUTUL fund gives more return compared to large or mid cap  but having volatility risk,  still people exit from small cap when market goes down and their portfolio become red(Because their selfconfidence goes down due to lack of guidance)

Two Ways to Start SIP:

Direct vs Through Financial Advisor

When it comes to starting an SIP, you have two main choices:

  1. Direct Plan – You invest directly with the Asset Management Company (AMC) without involving any intermediary.
  2. Through Financial Advisor / Distributor – You invest via a registered financial advisor or mutual fund distributor who helps in fund selection, portfolio review, and execution.

๐Ÿ‘‰Advantages of SIP Through Financial Advisor

  1. Expertise & Guidance – Advisors have market knowledge and experience.He protects you from selecting wrong product and false tips(Presented infront of you)
  2. Goal-Based Planning – Matches funds  to your  financial goals like retirement, education, or buying a house.
  3. Behavioral Coaching – Helps you to avoid panic selling during market crashes.
  4. Time-Saving – You don’t need to track market news daily.
  5. Support for Beginners – Especially useful if you are new to mutual funds.He pushes you to increase your SIP when markets are boaring(You get more units this time compared to bull market)

๐Ÿ‘‡Free SIP guide for beginners”



Common Mistakes in Direct SIP Investing

If you choose the direct route, you must avoid these mistakes:

  • Chasing Past Returns – Selecting funds solely on historical performance.
  • Ignoring Risk Profile – Investing in high-risk funds without understanding volatility.
  • No Portfolio Review – Not monitoring fund performance regularly.
  • Emotional Investing – Exiting during market downturns due to fear.

For query:Ask in comment or Email at 
sipthefuturewealth@gmail.com

๐Ÿ‘‰Recommended

 What is SIP(For beginners)

 How & where to start





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