When it comes to investments, two main questions usually arise: How safe is it? And how much return will it generate? However, one crucial factor that we often overlook is the TERM OF INVESTMENT, which impacts both of these considerations. We’ve all observed that the best fruits grow in the right season; for a mango tree to bear fruit, it takes about 10 years of growth. So, why do we forget this analogy when it comes to investments? Just like a tree needs water, sunlight, and different seasons to bear fruit, your investments also require time to yield returns. Both good and bad phases will come, but with patience, things will stabilize. Unfortunately, when we see even the slightest dip in the mutual fund market, panic sets in, and the reaction is often, “My money’s gone!” Sadly, many rush to withdraw their money at the first sign of loss, which erodes trust in mutual funds.
Half-hearted investments are a BIG NO.
We understand that when returns are slow or growth seems stagnant, it’s difficult to keep investing. But think of this as a temporary phase – THIS IS NOT THE END! It’s natural to feel discouraged when the funds you invested in show losses, but hang in there, as the high returns will eventually come. Stopping your SIP (Systematic Investment Plan) during tough times disrupts the expected returns and spoils your investment strategy. Therefore, never, under any circumstances, stop your SIP.
The More You Sow, the More You Reap
We all desire a life of comfort and luxuries, and most of us hope to enjoy that even after we stop working. Over the years, we’ve all seen the rising costs of living, and this trend is likely to continue. So, when expenses are bound to rise, don’t you think your SIP should gradually increase as well? That’s our advice – increase your SIP at regular intervals to ensure better returns in the future.
Mutual Funds Are Best for Long-Term Investment
The market is volatile, and all funds experience their ups and downs. That’s why mutual funds work best when invested over the long term. The key principle here is to avoid chasing immediate results. Trust the fund and give your money time to grow as intended.
It’s essential to remember that mutual funds are subject to market risks. Always read the offer document carefully before making any investments. However, we believe these tips will guide you on your investing journey. Happy investing!