Investing in mutual funds is one of the best investment choices. However, you should be aware of these common mistakes to avail yourself of better returns.
A lack of clarity about financial goals can lead to distorted investments. Hence, always have a defined objective and select the funds that align with your goals.
A late start in your SIP impacts compounding benefits. Early investments have a better chance to grow significantly.
Too much diversification may weaken returns. Hence, maintain portfolio effectiveness by balancing the spread of investments across funds.
Letting your SIPs run without review could lead to goal misalignment. Therefore, regularly reassess and tweak them to keep them in line with your objectives.
Failing to account for your risk tolerance can result in anxiety during market fluctuations. Thus, pick SIPs that align with your comfort and risk appetite.
ensure to avoid mistakes such as ignoring market risk, chasing high returns, skipping research, failing to adjust SIP amounts, and pausing SIPs during a market decline.
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