Planning for SIPs investments? 7 mistakes to avoid

Here are seven frequent pitfalls to avoid while using Mutual Fund SIPs.

Image credits: Freepik

Not Following Your Investment Plan

Panic selling during market downturns or raising SIPs during bull markets might derail your investing plan. Stay focused on your investing plan and avoid market-driven decisions.

Image credits: Freepik

Chasing Returns

It is risky to invest only in previous performance or top funds. Successful funds may underperform. Start with consistency, fund management, and investing goals.

Image credits: Freepik

Overlooking Expenses

Mutual funds include expense ratios and exit loads. These expenditures might reduce profits over time. To max gains, compare fund expense ratios and pick SIPs with lowest fees.

Image credits: Freepik

Ignoring Risk Management

Every investment contains risks that must be handled. Skip high-risk funds that don't fit your goals. Choose a diversified portfolio for long-term rewards and lower risk.

Image credits: Freepik

Not Reviewing and Rebalancing

Markets evolve, and your investment portfolio should match your financial goals. Check your SIP portfolio and rebalance as needed to meet your goals.

Image credits: Freepik

Ignoring Asset Allocation

Diversification and risk management require asset allocation, as do risky equity SIP payments. Your equity, debt, and gold should fit your risk tolerance and investing goals.

Image credits: Freepik

Neglecting Research

Without sufficient research, mutual funds can be risky investments. Before starting a SIP, research fund performance, management, cost ratios, investing goals, and risk profiles.

Image credits: freepik
Find Next One