Mutual Fund SIP: Do you want bumper returns from Mutual Fund SIP? Follow these 10 easy tips, you will get huge profits..

These days, there is a lot of activity in the stock market. Sometimes there is a strong boom, a correction. In such a situation, a Systematic Investment Plan (SIP) is the easiest and most sensible way to invest in mutual funds. Many people are doing SIP, but if some important things are taken care of, then even this small investment can make big money.

If you also want your SIP to give better returns than others, then definitely follow these 10 easy tips given below:

1. The sooner you start SIP, the more benefit you will get
By starting early, you will get to see the magic of compounding. That is, you also earn on your earnings, and with time it becomes a very big amount. The sooner you start, the sooner you will become a big amount.

2. Choose the right mutual fund
Not every fund is the same. Be sure to check the performance of the fund for the last few years, the credibility of the fund manager, and the percentage of expenses (Expense Ratio). Choose a fund that fits your needs, risks and goals.

3. Make regular investment a habit
The biggest feature of SIP is that you invest a fixed amount every month. Never miss it, whether the market is up or down. This habit will give strong returns in the future.

4. Do not panic if the market falls
The market will keep going up and down, but if you have started SIP, then keep doing it. When the market falls, you will get more units at a cheaper price, which will give more returns in the long term.

5. Increase the amount of SIP with time
As your salary increases, increase the amount of SIP as well. This is called 'Step-up SIP'. With this, you can make more money in less time and also achieve your goals quickly.

6. Check the portfolio from time to time
After starting SIP, do not forget it. Review all your funds once every 6-12 months. If a fund is continuously doing poorly, change it.

7. Do not invest all the money in a single fund

It is very important to bring diversification in the portfolio. Invest some money in equity, some in debt or gold fund. This will reduce the risk and the returns will also be equal.

8. Do not wait for the market to fall

Many people think that they will invest only when the market falls. But this method can cause harm. In SIP, it is not the time but continuous investment that is the game changer.

9. Choose the fund keeping your goal in mind

Do you want to buy a house? Or are you raising money for children's education? It will be more beneficial to choose a fund according to your financial goal.

10. Plan with SIP calculator

Nowadays, with the help of online SIP calculator, you can know how much return can be obtained on how much investment. This will help you in setting goals and understanding the time.

Just investing money every month is not enough. If you keep these 10 things in mind, then by investing in mutual funds through SIP you can earn more and stronger profits than others.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.