Investing through SIPs can be a smart way to achieve your financial goals. But you need to avoid some common mistakes that can affect your SIP returns. In this video, we will tell you about 5 mistakes that investors make while doing SIPs and how to avoid them.

SIP mistakes to avoid.

👉 Skipping SIPs
Compounding means earning money on your money and its returns. It makes your wealth grow faster, like a snowball. But if you skip a SIP installment, you break the compounding chain and lose a lot of money. For example, skipping one SIP every year for 20 years can cost you 40 lakh.

👉 Investing small amount via SIP
SIPs are not just for small amounts. If you invest too little, you may not reach your financial goals. For example, a ₹2300 rupees monthly SIP for 35 years will only be worth 20 lakh today after inflation.

👉 Not increasing SIP amount
Increasing your SIP amount can help you beat inflation and achieve your financial goals faster. For example, if you increase your SIP by 10% every year, you can make 4 crore in 35 years, instead of 1.5 crore with a fixed SIP. This is the power of compounding.

👉 Opting for IDCW Plan instead of a Growth plan
When you invest through SIPs, choose the Growth Plan over the IDCW Plan. The IDCW Plan pays out some of your profits periodically, which reduces your investment amount. The Growth Plan reinvests your profits, which increases your investment amount and earns more returns over time. This is called compounding.

👉 Investing for a short term
Equity markets can be tempting when they are rising, but they can also be risky in the short term. Past returns are not a guarantee of future returns. Different indices have different chances of losing money in one year. So, invest in equity for at least five years, or seven for riskier categories.

By watching this video, you will have knowledge about what are common mistakes, and you’ll have a clear path to avoid them.

Calculate your SIP returns with ET Money SIP Calculator [ Ссылка ]

📝 Chapters
00:00 Introduction
00:44 Skipping SIPs
01:50 Investing Small Amount Via SIP
03:02 Not Increasing SIP Amount
04:17 Opting for IDCW Plan instead of a Growth Plan
05:06 Investing for a Short Term

5 Best SIP Mutual Funds to Invest in 2023 | Invest in Top Mutual Funds for SIP
[ Ссылка ]

Best way to create Rs 10 crore corpus with SIP for retirement
[ Ссылка ]

#ETMoney

👉 To invest in Direct Plans of top Mutual Funds for free, download the ET Money app: [ Ссылка ]

👉 Subscribe to ET Money Hindi [ Ссылка ]

👉 Read more such informative articles at [ Ссылка ]

👉 Follow us on:
► Facebook: [ Ссылка ]
► Twitter: [ Ссылка ]
► Instagram: [ Ссылка ]
► LinkedIn: [ Ссылка ]

свернуть