Outlook Money
To initiate a Systematic Investment Plan (SIP) one has to plan in advance very carefully for the benefit of matching up with financial targets. Keeping certain points in mind can form a successful experience of investment.
The SIP quantity must be decided based on affordability and long-term goals. The longer the duration, the greater the benefit is obtained from compounding with regard to giving returns and lowering market volatility.
It is important to understand risk appetite. More risky investments could be higher in return but have volatility, while the low-risk ones are safer for conservative investors.
Assess past performance of the fund, cost ratio and fund manager experience help in making an informed investment choice and selecting a high-performing scheme.
Tracking SIP performance regularly keeps it aligned with financial goals. The SIP can be adjusted based on changing market conditions and personal financial positions.