Planning for SIPs investments? 7 mistakes to avoid
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Planning for SIPs investments? 7 mistakes to avoid

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

Not Following Your Investment Plan
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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.

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Chasing Returns
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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.

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Overlooking Expenses
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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.

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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.

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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.

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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.

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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.

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