7 mistakes to avoid while investing in mutual funds
Despite the craze, investment in mutual funds does not guarantee high returns. The reasons are often shallow knowledge and indisciplined approach towards investment. Here is a list of some common mistakes that investors should avoid while investing in mutual funds:
- Dec 19, 2018,
- Updated Dec 19, 2018 7:43 PM IST
Mutual funds provide an opportunity to investors to earn through the power of long-term compounding. Association of Mutual Funds in India (AMFI) data shows that the mutual fund industry has added about 9.74 lakh Systematic Investment Plan (SIP) accounts each month on an average this financial year, with an average SIP size of about Rs 3,200. There are over 2.5 crore SIP accounts through which investors regularly invest in Indian mutual fund schemes.
Despite the craze, investment in mutual funds does not guarantee high returns. The reasons are often shallow knowledge and indisciplined approach towards investment. Here is a list of some common mistakes that investors should avoid while investing in mutual funds:
Many investors have learnt to invest regularly in the market, but only a few of them regularly track their investment performance. Timely reviewing the performance of your fund would keep you aligned with your investment goals. Weed out the funds that are not giving good returns as compared to their peers. But critical point is that investors should give ample time to their mutual fund to grow. Ideally, a time frame upwards of a year should be given to a fund to earn decent returns.
Mutual funds provide an opportunity to investors to earn through the power of long-term compounding. Association of Mutual Funds in India (AMFI) data shows that the mutual fund industry has added about 9.74 lakh Systematic Investment Plan (SIP) accounts each month on an average this financial year, with an average SIP size of about Rs 3,200. There are over 2.5 crore SIP accounts through which investors regularly invest in Indian mutual fund schemes.
Despite the craze, investment in mutual funds does not guarantee high returns. The reasons are often shallow knowledge and indisciplined approach towards investment. Here is a list of some common mistakes that investors should avoid while investing in mutual funds:
Many investors have learnt to invest regularly in the market, but only a few of them regularly track their investment performance. Timely reviewing the performance of your fund would keep you aligned with your investment goals. Weed out the funds that are not giving good returns as compared to their peers. But critical point is that investors should give ample time to their mutual fund to grow. Ideally, a time frame upwards of a year should be given to a fund to earn decent returns.