Mutual Funds: If you are investing through SIP, then keep these things in mind, there can be no loss


Mutual Funds: Sys‍Tematic Investments‍Tementation P‍Lan i.e. SIPs are making money in large number of retail investors in mutual funds through SIP. If you are thinking of investing in SIP, then first get complete information about it because due to lack of information many investors make some mistakes and have to suffer loss instead of profit. Today we are telling you about 5 such mistakes that investors often make while investing in SIPs.

Unclear financial goals

  • If you are investing in mutual funds then your financial goals should be clear.
  • If your financial goals are not clear then you may choose the wrong fund.

Choosing Dividend Pay ‍Lan over Growth

  • It is not right to prefer dividend plan instead of growth plan.
  • Investors who do this feel that they will get fat when M‍mutual fund announces dividend Earnings will happen.
  • It is not known to most investors that mutual funds pay dividends from their assets under management. This deducts the dividend paid from the NAV. At the same time, the dividend is calculated on the face value of the fund and not on the basis of NAV.
  • Also note that in case of tax exemption to investors in Growth P‍Lance Also more‍get more benefit.

Don’t make this mistake when the market is going down

  • Many investors stop the SIP when the market is down and start investing when the market goes up.
  • But it is wrong to do so and this is the basic principles of investing buy low and sell high Quite the opposite. You can avoid this mistake by continuing to invest even during falling markets.
  • Ignore the market movements but invest in the category of funds matching with the investment tenure. This way you can choose the right fund.

Don’t make frequent changes

  • Don’t constantly adjust your portfolio.
  • Do not buy or sell shares that are seen by others. This can be harmful as everyone’s financial goals and situations are different.
  • Many people invest based on the past performance of the fund but this is not entirely accurate. Always keep in mind that the returns of the fund are subject to change.
  • The value of the fund changes every quarter. You should also refer to other parameters before selecting the funds.

Don’t assume low NAV as cheap‍ta funds

  • Low NAV (Net Asset Value‍u) should not be taken as a cheap‍te fund.
  • There can be many reasons for the high or low NAV of a fund.
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  • Investors should not put too much emphasis on NAV while investing in mutual funds through SIPs.
  • Investors should focus on the past performance of the fund. Also, his future‍Y’s plans should be focused.

(Investment advice in any fund is not being given by ABP News here. The information given here is for informational purposes only. Mutual fund investments are subject to market risk, all planning documents should be carefully read Read. The NAV of schemes may fluctuate depending on the factors and forces influencing the security market including interest rate fluctuations. Past performance of a mutual fund, not necessarily reflect the future performance of the schemes The Mutual Fund does not guarantee or guarantee any dividend under any of the schemes and is subject to the availability and adequacy of distributable surplus. Investors are advised to carefully review the prospectus and seek specific legal , Tax and expert professional advice regarding the financial implications of investing/participating in the scheme is requested.)

 

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