7 Common SIP Mistakes
Are you unknowingly destroying your long-term wealth? Here are the most common pitfalls Indian investors make with their SIPs.
1. Stopping SIPs during a Market Crash
This is the worst mistake you can make. A crash is when units are on sale. Stopping your SIP means you miss the recovery.
2. Chasing Past Returns
Investing in a fund just because it gave 40% returns last year is dangerous. Reversion to the mean often guarantees lower returns the following year.
3. Over-Diversification
Having 15 different mutual funds doesn't make you safer. It just dilutes your returns and turns your portfolio into an expensive index fund.