Mutual Funds SIP Strategy: Despite being market linked, Mutual Funds are a very popular scheme today. Through SIP, you can easily deposit the amount as per your capacity every month and get strong returns.
Despite being market linked, Mutual Funds are a very popular scheme today. The reason for this is that through SIP in this scheme, you can easily deposit the amount every month as per your capacity. Also, the returns received in this scheme in the long run are much higher than other government schemes. According to experts, the average return in SIP is 12 percent and sometimes it can be 15 percent or more. Due to compounding and better interest rates, your money doubles and quadruples faster in the long run. If you have also decided to invest in Mutual Funds SIP then keep these 4 things in mind. After this see how your money will double and quadruple.
1. Invest for the long term
If you want to create wealth through SIP then start SIP for a long term i.e. 15, 20, 25 years or even more. The longer you start SIP, the bigger amount you can add through it. Even by investing a small amount every month, you can create a fund worth crores through this scheme.
2. Be disciplined about investing
You have to be disciplined in terms of investment. Meaning, if you have started investing once, then continue it continuously. If you have started SIP for a long time then do not stop it midway nor withdraw money in between. Of course, you can start SIP with a small amount, but if you continue it with discipline for a long time, you can earn good profits.
3. Do not start SIP of very large amount
If you are starting SIP for a long time, then do not start it with a very large amount. The reason for this is that sometimes due to some special circumstances, people are not able to continue SIP of large amount continuously. In such a situation, the SIP stops midway, due to which you are not able to earn good profits from it. If you feel that you can invest more money in it then you can start a new SIP. The good thing about this is that you can run any number of SIPs and decide its tenure as per your choice.
4. Top up SIP
Another better way to accumulate big funds through SIP is to keep increasing the amount with which you have started the SIP by a little bit every year. If you top up SIP every year at the rate of 10 percent or even 5 percent, then you get tremendous benefits and your money doubles and quadruples rapidly.
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