Understanding SIP: 7 Investment mistakes you should never make
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Delaying Starting SIPs
Delaying SIP investments can impact long-term gains. When you start earlier, your money has more time to compound, leading to greater wealth accumulation.
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Stopping SIPs During Market Downturns
SIPs work best when you invest consistently, regardless of market conditions.
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Investing Without Clear Goals
Setting goals like retirement, buying a house, and children's education will give direction to your investments.
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Ignoring Fund Performance
Not monitoring your mutual fund can be risky. Regularly check the fund's performance and switch if it consistently underperforms.
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Choosing the Wrong SIP Amount
Setting the SIP amount too high or too low can affect your financial planning.
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Lack of Diversification
Diversify across different funds and asset classes to enhance returns instead of investing all your SIPs in a single fund or sector.
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Ignoring Inflation
Not accounting for inflation can lead to a shortfall when you reach your investment goals. Adjust your SIPs periodically for inflation to grow your assets in real terms.