Mutual funds are not making profits, are you making these mistakes?

#MFInvestorsmakemistakes

Mumbai: Mutual funds have become a very popular investment platform among investors. By investing in it, you can prepare a huge fund for the future. If you too, while investing in mutual funds, we often make some common mistakes. Due to which our profit is reduced or we may have to suffer losses. Let’s know about it in detail.

Different funds are available for investment in mutual funds. Equity, debt and hybrid are the main ones among them. In this, you can invest through SIP, STP and SWP. Today we are going to talk specifically about SIP.

SIP (Systematic Investment Plan) is the easiest way to invest in mutual funds. Mutual fund SIP gives a minimum return of 12 to 14 percent. However, this return depends on the fluctuations of the market.

Today we will talk about some common mistakes that investors often make while investing in mutual funds. These mistakes are alert for those who are planning to invest in mutual fund SIP.

Investors make these mistakes

Stopping SIP when the market falls

It is usually seen that SIP investors get nervous when the stock market falls. They consider closing the SIP in such a situation. So that they do not suffer much loss. Which is completely wrong. If you want profit in mutual funds, then invest for a long time. You will get profit by investing in the long term.

Along with this, when there is a fall in the stock market, then this time is considered better to invest. Because at this time the value of the stock decreases or you get shares at a lower price. Therefore, this is not the time to stop SIP, but the time to invest.

Not choosing the right fund
The investor should choose the fund according to his need. For example, if they want maximum profit, then invest in equity funds. Similarly, if they want to invest in low-risk funds, then they can choose debt and hybrid funds. Apart from this, investment can also be made in ETFs like digital gold.

Ignoring tax and other charges

Your money in mutual funds is invested by the fund manager or agent. In return, you are charged a charge or fee. At the same time, the profit made in mutual funds comes under the purview of tax. How much tax will have to be paid on its profit or profit depends on the investment period.

Shares come under financial assets. Therefore, capital gains tax has to be paid on the profits from them.

Lack of patience

It has also been seen that investors have to make profits as soon as possible. But mutual funds can only be profitable if you invest for a long time. Therefore, be patient while investing in mutual funds. If you are not able to pay money in SIP due to any financial crisis, then choose the option of SIP Pause instead of closing it.

Not increasing the investment amount
Your investment amount increases automatically through SIP top-up. You can decide this amount yourself. Apart from this, you can also increase your investment amount through normal mutual funds whenever you want.