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Ways For New & Existing Sip Investor To Maximize Sip Returns
Thanks largely to the efforts of financial advisors and investments awareness programs of asset management companies (AMCs), retail investor participation in mutual funds through the SIP route has increased manifold in the last few years.
Ways For New & Existing SIP Investor To Maximize SIP Returns
1. Start early and invest for long periods
The most important ingredient in the wealth creation recipe is not money but time. Money when invested is put to work and the longer it works, the more profits it can generate. Profits invested generate more profits and over the long investment horizon you can create substantial wealth.
2. Remain disciplined even during volatile markets
Stock markets are volatile – ups and downs are part of equity investments. Sometimes markets can be extremely volatile correcting 20% or even more. We understand that volatility can be stressful because no one likes to see losses. However, you must resist the urge of canceling or stopping your mutual fund SIP in market corrections.
3. Increase your SIP periodically to boost your wealth
Increasing your ...
... systematic investment plan (SIP every year is not a complicated process. Most mutual funds offer SIP Top Up or Step up facilities, whereby you can increase your SIP by a fixed amount or fixed percentage every year.
4. Tactically take advantage of market corrections to invest in lump sum
If you are investing through SIP in a best mutual fund scheme and have funds available to invest a lump sum, take advantage of market corrections tactically, by investing a lump sum in the same scheme.
Conclusion
1. In order to get the maximum returns from your SIP, you should start early and invest systematically over very long periods, at least 10 years or even longer to get the best results
2. Remain disciplined in your investments and do not get perturbed by volatility. SIPs help you take advantage of market volatility by Rupee Cost Averaging of purchase price.
3. Increase your SIPs every year with a rise in your income. This will boost your wealth substantially in the long term.
4. Take advantage of corrections to tactically invest in lump sum. You are likely to get excellent returns in the medium to long term.
Vista Wealth is a leading Financial Advisory firm in Delhi guiding investors since 1993. Serving a client base of 10000+ delighted families. Delhi Best Mutual Fund Advisor with a motto of “Simplifying Wealth Creation”.
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