Mutual fund investment is on rise and rate of increase is
highest ever. SIP (Systematic Investment
Plan) is best and favorite tools for entering in Trading market. While you can
invest in mutual funds as per your risk mood like low risk in Large Cap,
moderate risk in Mid Cap and highest risk in Small Cap. But, recent losses in
Mid Cap category have put new investor in thoughts!
New investors are thinking if mutual fund market especially
SIP is still a safe option to invest in market or not. While we still see more
and more investment in the market, the main reason could be “a blind sheep”
approach or investor might be following as SIP is in trend.
If you fall in this category, then consider following before
investing or re-investing:
1. Do not get fascinated by what all are doing:
Do not invest in the market or SIP because
your friend, neighbor, boss, telecallers are telling you to do so. Everyone has
their plans and should invest as per their plans.
2. Investment advice is bread and butter for
Adviser:
If you are sitting with Financial Adviser,
anything you ask will be sorted out by investing in SIP or mutual fund. For e.g.
– You want a house, response will be to invest in SIP and when you have a good
sum, purchase a house from it. However, it may be possible for you to purchase
the house on EMI. Further, you can reduce your loan through savings in due
course of loan.
3.
Stick to
the plan:
If you are planning to purchase a house,
car, home appliances, children marriage etc. then take all kinds of options in
consideration and not just only SIP. Also, it is always better to build a
portfolio containing various instruments like PPF, FD, MF, SIP, LIC, EMI, Govt
schemes. All selected instruments should be chosen considering risk and
returns.
4. Keep it simple:
If you are, somehow, not able to understand
any market investment scheme resulting in blind faith in your Adviser, I will
suggest you to think again. You may better choose to invest in something which
you can understand then suffering losses or earning tension because you do not
understand that instrument. For eg – SIP investment can earn you little or
negative earning initially or for a period up to 5 year (again even this cannot
be assured). If you are not aware about this nature of SIP or market
fluctuations, you may start worrying about your investment or may end up in
losses by exiting.
If you are safe game player then ideally you
should not head to Market as FD, PPF, NSC, LIC etc will be your friend. But, if
you are aggressive enough and want some handsome wealth generation (but not
quick) then you can start investing in Market.
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