Producer:  Priyanka Das Editor: Sujata Singh

5 Common SIP Mistakes You Must Avoid

Not Having Clear Financial Goals

 Having a clear financial goal will help you select the right SIP plan and stay focused on your investments. Before starting a SIP, it’s important to know why you are investing?

Investing Too Little or Too Much

 It’s important for investors to keep in mind that the amount allocated to SIPs should be tailored to their unique financial goals and risk tolerance. The amount invested is a critical factor in reaching these objectives.

Investing Too Little or Too Much

Diversifying your investments across different SIP schemes or funds means you spread your money across various asset classes, including equity, debt, and hybrid funds.

Not Reviewing Your Portfolio Regularly

While SIPs are meant to be a long-term process, it requires constant monitoring and evaluation. It’s important to periodically review your portfolio and make adjustments if necessary for successful SIP investing. 

Chasing High Returns

Investing through SIPs with the sole objective of chasing high returns is a common error made by investors and can be dangerous. High returns often come with high risks and may not be sustainable in the long term.