Pushpendra Singh On ET Now Swadesh: investing in crypto through SIP
A panel on ET Now Swadesh with Naimish Sanghvi and Anuj Bhasin, on whether a SIP approach makes sense for crypto and what it changes for Indian investors.
A panel discussion on ET Now Swadesh, with Naimish Sanghvi and Anuj Bhasin, on putting money into crypto through a SIP rather than in one go.
My position on this has not changed. Buying a fixed amount on a fixed date is not the way to the largest possible return, and anyone selling it that way is overstating it. What it does is remove the decision, and the decision is where most people lose money: they stop buying when prices fall, which is exactly when the plan is working, and they add more when prices rise, which is exactly when it is not.
There is a second reason it suits India specifically, and it rarely comes up on television. A SIP is a plan for buying, not for selling. Because a 30% tax applies to every gain and losses cannot be set off against anything, trading in and out repeatedly is more expensive here than almost anywhere else. A method that naturally results in fewer sales is not only easier to stick to, it is cheaper at filing time.