Mutual Fund Investing Tips to Maximise Your SIP Returns
Business Desk | October 29, 2024
Investing in mutual funds through a systematic investment plan (SIP) is a popular approach for disciplined wealth building. Here are key tips to maximise your SIP returns and make the most of this investment avenue.
Image: Canva
Stick to your SIPs, even during market fluctuations, to build a larger corpus over time.
Image: Canva
As your income grows, aim to increase your SIP contributions. Even small increments can significantly impact long-term wealth.
Image: Canva
SIPs work best when continued through various market cycles, as downturns allow you to buy more units at lower prices, potentially enhancing future returns.
Image: Canva
Expense ratios, or the fees charged by fund houses for managing the fund, can affect your returns.
Image: Canva
SIP calculators are especially helpful in visualising how incremental investments or changes in duration could affect your investment goals.
Image: Canva
For long-term goals, equity mutual funds often generate better returns, while debt funds are more stable and suitable for conservative investors.
Image: Canva
Track your SIP performance, and if the fund underperforms consistently, consider switching.
Image: Canva
Don’t just pick funds based on recent high returns. Look at factors like fund history, asset management style, and consistency.
Image: Canva
Moneycontrol advises users to check with certified experts before taking any investment decisions.
Image: Canva