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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.

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