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Avoid These 5 Mistakes While Investing Through SIPs

Mutual fund SIP is Systematic Investment Plan. SIPs are the only mode of investment through which we can invest in the most convenient way to invest in equity market. This method of investing is not your only option. You may also want to look into Property Investment Company if you want to explore all investing opportunities. Property is a particularly lucrative form of investment, especially turnkey real estate for less than 100k.

It allows an investor to invest a fixed amount regularly. It is designed in such a way that no one has to waste time in searching correct mutual funds or keeps an eye on the Stock market. You just need to find a fund scheme and start a SIP.Generally People take the advice from the personal finance adviser too but they failed sometimes.

Mistakes While Investing Through SIPs

Here are some common mistakes people do while investing in SIP are:-

Correct SIP amount

One should know his correct amount to invest in SIP. Many people make mistake by investing huge money at once without knowing the current status of the fund. Sometimes it gives lose to the fund and investor quit. So, it’s very important to know, what the correct amount to invest in SIP is.

Invest for Long Term

A common mistake which is found that investor withdraws the SIP in short term due to which did not get the ultimate profit. One should be invested in SIP for the longest tenure. It is designed for longer tenure to enjoy the benefits.

Waiting for the Stock Market to be on a Better Side

One waits for the stock market to be on the better side before investing in SIP. SIP is designed for longer tenure so stock market will perform in up and downtrend. There is no proper time to invest in SIP. Earlier you start better is your return.

Periodically Increasing the Amount

SIP amount needs to be increased with increase in our income as one tends to continue the same amount of investment in SIP. We need to understand the inflation rate changes and the value of Rs 1 lakes at present will be Rs 40 thousand after 25years.

Picking up the Wrong Fund

Often people don’t know which fund will suit their need and they invest. Probably the mistake which 80% people do. One should know his goal and return expected then analysis accordingly the fund which he can depend upon. Before finalizing the scheme you need to check the past performance, current portfolio and expense ratio.

The people who can’t invest a lump sum amount in a mutual fund can start investing in mutual fund through SIP to get a good return. SIP can complete all your financial goals if invested in a proper manner. The investment return through SIP is on the higher side if invested for a longer tenure. One should always keep a check on a mistake which people generally do.

Make a financial goal of your own and start investing through SIP to fulfill the same. SIP is sure shot higher return investment tools for an investor. Before picking the scheme one should analyze the same before investing. People tend to do the mistake of picking the wrong scheme in SIP.

Selecting fund scheme is the main research to be done as an investor. A different fund has a different portfolio for different customers. A fund is divided into Growth fund and balanced fund. The fund portfolio is created by keeping the customer’s appetite for risk. One should wisely choose their fund scheme to make their money grow at the higher rate.

Some of the Best Schemes Present in the Market of SIPs Are:-

  • SBI Bluechip fund
  • HDFC balanced fund
  • Kotak Select focus – Regular
  • L&T India Value FundHDFC Mid-Cap Opportunities Fund

Also Read: Top 10 SIP Mutual Funds to Invest for Future Growth

SIP can make your entire financial requirement fulfill if invested in a proper manner. The SIP interest rate returns generally between 6% to 30%. One needs to continue for the longer term. In the market, we can find SIP calculator also to forecast our return if invested periodically for a time period.

SIP does it all for you without thinking a single minute over it. It grows as the market grows but SIP demands discipline. One should not panic as some people tend to panic when stock market decline. In a panic, they withdraw their fund and lose all the profit.

Many people do mistake by keeping an eye on their SIP investment which should not be done as the market fluctuates at regular intervals. Before concluding I just want to add SIP is the mode of investment at present which is outperforming the other sector just go for the longer tenure and avoid the mistakes.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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