SIPs or Systematic Investment Plans are a method to invest in mutual funds. They are not a type of investment. They are a way we invest in mutual funds over a period of time. These are sometimes taken as the best way to invest for laypersons. Moreover, to make matters easier, you can use a sip calculator that will help you plan your investments better.
However, given that SIP investment is very easy and simple for the layperson, it is possible to make mistakes while investing in this method. What are the mistakes you can make? How to avoid them? Find out only here!
Sometimes investors opt for SIP investment with mutual funds with the aim to retire early. But the unrealistic expectation they set for themselves is the time frame. They want to retire fast and they want to retire now. Therefore, you need to set a proper goal, only then the SIP investment can help you achieve that goal, realistically. Use sip calculators to predict the returns you will get.
Sometimes you need to choose the right fund, but make the mistake of choosing the wrong fund for the right goal. Sometimes, investors choose schemes that is out of their risk profile, then keep worrying about the market and their portfolio. Choose the right funds. If you don’t have the confidence to do so, you need to get in touch with the right mutual fund agent.
If an investor is keen on investing in equities, they should do so for the long haul and not for the short term. If they wish to invest in short-term schemes, they need to choose liquid funds or debt funds with a shorter duration. Use a sip calculator to help you assess the returns.
You need to pick the right amount for the SIP investment. This is because too little will yield very little results and too much means you will be paying a lot. So before you start the investment cycle, you need to choose the right SIP amount.
In case you are afraid of market volatility and quit your SIP investment amount, that’s the wrong way to go! Do not be afraid of market volatility, as market lows mean you gain more units of the mutual fund.
In conclusion, avoid these 5 mistakes and make use of a sip calculator to help you calculate the returns. Still consider investing by yourself risky? Get in touch with a mutual fund agent like Money Assist today!