Systematic investment plan IE SIP is the famous investment tools in common investment funds. According to data from December 2024, a record of 26,459 investment crores came by SIP in the industry of the common investment fund. But during the same month, there was also a drafting of RS 80,509 crosses (approximately 42% of the total investment in equity).
According to June 2024 data from the Mutual Fund Association (AMPHIE), only 54.7% of equity investors are invested for more than two years. This means that more than 45% equity investment is withdrawn within two years. It is a known rule according to which equity is an active in long -term investment.
After all, what is investors who are starting to sip with great enthusiasm and a long-term investment state of mind must have trouble maintaining investment even for 5 to 7 years. The reason is the appropriate lack of management of personal finances and non -real expectations of investment. Therefore, if you are going to make a siroté, certain errors or misunderstandings must be avoided.
Do not make these 5 errors
1. Do not expect more yields. If this does not happen, they turn off the SIP and turn to methods like future and option. The yield of the SIP composition is deteriorating due to impatience and greed.
2. Do not reduce the market down, many investors are nervous about the drop in the market and remove money by closing the SIP. During the market drop, other units are available and later on the market, they obtain more yields. Therefore, SIP should not be closed in the fall.
3. Keep an emergency fund, people often close SIPs on illness, missing work or any other emergency. For such an emergency and unexpected expenses, an emergency fund must always be maintained. The repeated closure of the SIP has disrupted the long -term investment objectives.
4. Create a separate sip for different objectives. To avoid this, keep different sips for different objectives. For example, make a separate sip for large purchases such as buying a house or car. Make separate SIPs for children’s education, marriage, etc. and other short -term goals.
5. Avoid uncontrolled loans. Avoid spending or spending expensive purchases by borrowing or walking. People first close SIPs to reimburse such a loan.
Adopt rules 10-7-1 for SIP
Be ready to decrease 10%, think that your investment will drop by 10% each year. The market has dropped at least 10% in 20 years in the past 23 years. You have to be able to maintain your investment during this instability.
Give the investment for 7 years, give SIP over 7 years. Investments kept for 7 years have always given positive yields. In long -term investment, you see the real strength of composition.
Increase your investment each year, increase the SIP amount each year. If you deposit 25,000 ₹ per month for 10 years, the estimated performance at 12% will be an amount of 58 lakhs. If you are increasing 10% investment per year each year, there will be a fund of 84 lakhs.
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