Mutual Fund SIP | Avoid these mistakes while investing in SIP, otherwise you will suffer huge losses in pursuit of higher profits.
Mutual Fund SIP Systematic Investment Plan has become an effective and popular means of regular and disciplined investment for today's retail investors. Through this, investors can take advantage of rupee average value and compound interest. However, many new investors make mistakes while investing in SIP, which can impact their goal of raising a large fund. Experts believe that those investing in SIP should avoid some common mistakes to get the most out of the investment. Major mistakes include choosing dividend option, investing in funds with low NAV, expecting unrealistic returns, stopping SIPs during recession and choosing funds based on recent performance. Let us know in detail how to stay away from this.
Care must be taken while doing SIP
Before investing in SIP, understand your goals, risk appetite and investment tenure. Also, choose a diversified fund, continue to invest regularly and do not stop SIP in a hurry, do not be afraid of market fluctuations and keep investing patiently as SIP has seen long term gains in the past.
set investment goals
Before starting a SIP, decide on your investment goals such as saving money for children's education, retirement planning, or buying a house. Finally, determine your goals and choose the right fund based on them.
Avoid investing in too many funds -Mutual Fund SIP
Investing in multiple funds at the same time can complicate your portfolio. Invest in limited and diversified funds that suit your risk appetite and goals.
Don't wait for market trends
The main objective of SIP is to make regular investments. Trying to stop or start an investment depending on market conditions may result in losses.
review investment
Review your SIP portfolio from time to time. If a fund doesn't meet your goals, make changes with expert advice.
Do not close SIP in haste
If you need money immediately, consider partial withdrawal instead of stopping the entire SIP. Investing for a long time gives you the full benefit of compound interest.
Disclaimer : Investing in mutual funds and stock market is based on risk. Before investing in the stock market, definitely consult your financial advisor. tezzbuzz.com will not be responsible for any financial loss.
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