Mutual Funds: If you are going to do SIP for long time then remember these 3 things..
In today's time, SIP i.e. Systematic Investment Plan is considered to be the best investment option. Despite being market-linked, it is considered less risky than investing money directly in stocks. Money is invested in Mutual Funds through SIP. According to experts, since it is market-linked, there is no guaranteed return in it, but the average return is up to 12 percent, which is quite good compared to all the schemes running today.
This is the reason why the number of people investing in SIP mutual funds has been increasing rapidly in the last few years. But if you are planning to invest in SIP for a long time, then you should especially keep three things in mind. With this, you can earn very good profits.
1. Be disciplined about investing
If you want to create wealth through SIP then you will have to be disciplined in investing. Meaning, if you have started investing once, then continue it continuously. If you have started SIP for a long time then do not stop it midway nor withdraw money in between. Of course, you can start SIP with a small amount, but if you continue it with discipline for a long time, you can earn good profits.
2. Do not start SIP of a very large amount
If you are starting SIP for a long time, then do not start it with a very large amount. The reason for this is that sometimes due to some special circumstances, people are not able to continue SIP of large amounts continuously. In such a situation, the SIP stops midway, due to which you are not able to earn good profits from it.
3. Top up SIP
Another better way to accumulate big funds through SIP is to keep increasing the amount with which you have started the SIP by a little bit every year. If you top up your SIP every year at the rate of 10 percent or even 5 percent, you will benefit greatly in the future.
PC Social media