SIP Mistakes: You are not getting the expected profit from SIP, are you making these mistakes?

News Topical, Digital Desk : Everyone wants to invest in mutual funds these days. The reason is the returns they offer. The minimum expected return from mutual funds is 12 to 14 percent. However, this return also depends on market fluctuations. 

Most people choose SIPs to invest in mutual funds. SIPs allow you to invest in installments. However, SIPs can sometimes lead to losses because we often make common mistakes. 

What mistakes do you make while doing SIP?

Chasing profits - Investors often invest in funds that have recently generated good returns. Investors are driven by the pursuit of returns. However, chasing investments doesn't necessarily yield significant profits. Funds should not be chosen solely based on past returns.

Stopping investments when you see a decline - Investors often make the mistake of stopping investments if a fund is incurring losses. However, this is the best time for SIPs. During these times, you can purchase more units. Therefore, if the fund makes a profit or is in positive territory, you have a better chance of making a profit. 

Waiting for the right time - There's no right time to invest in a mutual fund SIP. The earlier you start and the longer you hold it, the more you'll benefit. You can only reap the benefits of compounding in mutual funds if you invest for the long term. 

Overinvestment – ​​Many investors, in their enthusiasm, invest more than they can save. This can lead to a loss in mutual funds, which can lead to a loss. 

Read More: SIP Mistakes: You are not getting the expected profit from SIP, are you making these mistakes?