Mutual Fund SIP: Today there are many options to invest for the long term. Mutual Fund SIP is considered a better option to make big money in the long term. AMFI data shows that crores of rupees can be made by investing in SIP for a long period. However, you will get the full benefit of SIP only if you take special care of some things. Let us know the things that should be taken special care of while investing in SIP.
The real fun of Mutual Fund SIP comes only when you start it as soon as possible. SIP can be started even with pocket money at the age of 20. Then when you get a job, increase the money in SIP.
To make maximum money through SIP, you should continue investing for as long as possible. There is tremendous benefit of compounding in SIP and this benefit can be availed only when you continue it for a long time.
To earn a lot from SIP, keep in mind that your investment should continue without stopping. If you miss the payment of SIP, it can have a bad effect on your returns.
Sometimes it may happen that you need money and do not have enough money for SIP, in such a situation do not stop SIP. If you do not have it, then SIP can be paused.
Do not invest all the money in a single scheme for SIP. If you want good returns, then invest money in different schemes.
Manage your SIP portfolio in such a way that at least 70 percent of your investment goes to large cap funds, 20 percent to mid cap funds and 10 percent to small cap funds.
Just as your salary or income increases every year, similarly keep increasing your investment by 5 percent, 10 percent or 15 percent every year according to your capacity.
