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New Delhi. The centers help save your money but investment strengthens you financially for the future. Your money is saved and grows in investment. SIP is one of the easiest ways to invest. But many times people lose their growth due to some very simple mistakes while doing SIP.
It is not necessary to only invest money, its care is equally important. Today we will talk about 5 such mistakes, due to which people lose their lead and it is good to leave them in 2024 itself.
First know what SIP is? SIP is a systematic investment plan. In this, a fixed interval goes on investing a fixed amount. On this you get interest and then compound interest. In this way, the small investment you have made a big fund. Now we know 5 mistakes that you have to leave in this year.
Investment in SIP without target- Investing without any clear target in SIP can be a big mistake. It is very important to set a particular financial goal for your investment, such as buying a house, depositing money for child education, or saving for retirement. Without the goal you will not be able to assess your progress properly and your investment will not work according to your needs.
Choosing a fund without thinking-Choosing the fund without understanding and understanding can harm your investment journey. Many times people invest by looking at popular funds, but it is important to understand that every fund has its own strategy, return and risk levels. Therefore, investing without research can be wrong.
Not making regular review of your SIP- not regular review of SIP is also a big mistake. As the market changes and your financial goals increase, it becomes necessary to assess your investment portfolio. By reviewing regularly, you can understand which fund is performing weak, rebellance to invest or increase contribution when your income increases.
Ignoring the risk of the market- Investing in SIP without understanding the risk of the market can harm you. SIP is a long-term investment, and market fluctuations are part of it. By ignoring these risks, you can panic at the time of market decline and take wrong decisions.
Not increasing the amount of SIP- Standing on the same SIP amount for a long time can limit your potential earnings. As your income increases or your financial condition improves, the contribution of SIP should also be increased. Especially when you are young and you have more time for compounding, then the investment increases rapidly by increasing the contribution.
