Blog!
How to achieve a good return on your SIP mutual funds?
Systematic investment plans (SIPs) are easy to operate over a longer period of time and can yield high returns. There are also ways to use SIP to get much more consistent performance while gaining wealth. Here are some of these tools to make you more productive in SIP. Everyone wants the best of individual investment and always wants investment instruments that offer good liquidity, capital appreciation, return on investment, tax efficiency and the like. However, market conditions, social and geopolitical changes in the country cannot be guaranteed. In this respect, equity mutual funds, in particular through SIPs, are becoming the instrument of choice for long-term investments. Systematic investment plans (SIPs) are easy to operate over a longer period of time and can yield high returns. There are also ways to use SIP to get much more consistent performance while gaining wealth. Here are some of these tools to make you more productive in SIP.
Soon it is good
A good lesson about investment, especially at the beginning of life, will certainly help. A systematic approach to investment at an early age will help to build a good corpus with less money in the long term. For example, someone can make a Rs 1 Crore corpus in 40 years at 10 percent annually by investing less than 2,000 rupees a month through a SIP mutual fund if one is in 20 years.
However, in order to increase the same amount at the age of 40, it will be necessary to invest about 0.14 000 Rs per month. The point is that when he is young he has less responsibility, so the risk is more evenly distributed over longer SIPs.
Markets and the economy are rare. They will have heights and minima. Government policies around the world will continue to evolve. One should not stop investing for minimum values.
Try to ignore volatility
Markets and the economy are rare. They will have heights and minima. Government policies around the world will continue to evolve. One should not stop investing for minimum values. In fact, lower circles can greatly increase investment wealth. At SIP, you eventually get more units when the market moves south. To be able to make the best use of the equity MF, be patient and continue investing as usual during these periods. One is more likely to achieve better returns by not focusing on every market movement and investing for at least seven years.
Use multiple paths
For someone who started investing at the age of 20, it is easier to invest more often using the SIP route, taking into account additional disposable income and no obligations at least until someone marries or has more existing commitments. In such cases, it is appropriate to develop parallel targets to ensure that current investments are not affected. In short, have a financial plan and invest in accordance with the objectives. For short-term goals, invest in debt MFs. In the long run, make sure you have chosen capital while investing in different organizations, such as your child's retirement or higher education.
Stand up
As one continues to set new targets and adjust revenues against inflation, it is also necessary to increase the initial amount of investment to cover costs. Therefore, each annual walk in the workplace should ideally also increase the individual portfolio by a continuous percentage. This will help your investment better.
Do not withdraw a lump sum
Unless this is a planned requirement or reserve, do not deduct a one-off amount from your portfolio. Do not just choose according to your real needs.
