Mutual Fund: Are you making these mistakes when investing in mutual fund SIPs? 4 myths to avoid; see details...

Nowadays, everyone wants to invest in mutual funds due to the attractive returns they offer. The minimum expected return is 12 to 14 percent. However, this return depends entirely on stock market fluctuations.

Today, people are investing heavily in mutual funds through SIPs. There are many myths about mutual funds. It's important to understand them. These myths and mistakes reduce your returns. Let's discuss these four mistakes one by one.

What are those four mistakes?
Stop SIPs during stock market declines.
The stock market is constantly fluctuating. Many people stop SIPs to avoid losses during declines. This is completely wrong. Stock declines are crucial for SIPs. Maximum investments should be made during this time so that you can earn profits when the market rises. During stock market declines, more mutual fund units can be purchased.

No matter what, SIP investments should not be stopped.
It's not possible to consistently invest in SIPs. Many financial challenges can arise in life, such as major projects like marriage, buying a house, or losing a job.

Investing in SIPs may not be possible during such times. Therefore, in such situations, you can pause your SIP for a few months. You can also increase or decrease the amount for a period of time. Mutual fund SIPs are more flexible than fixed investment schemes. Therefore, you can explore other options before completely terminating or stopping your SIP.

The duration of your SIP should be determined based on your needs and convenience.

Any fund is right
Another mistake investors often make when investing in mutual funds is assuming that any fund is right for them. However, not every mutual fund is right for everyone. When choosing a mutual fund, you should consider several factors besides returns.

Also, consider the type of fund you are choosing.

SIPs always yield good returns.
Another myth often heard among investors is that SIPs always yield good returns. But this is not the case. Your returns depend on the type of fund you choose.

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