not performing well, then your fund is also likely to follow the trend and provide low returns. Also, in equity funds, investing one’s funds in small or mid-cap funds or large cap because previous year returns were very good is not a good idea. Allocate your assets in a diversified manner. It should mostly be a mix of long-term, mid-term and short-term funds. Asset allocation varies from person to person. Investing in only one type of fund is not advisable.
When to withdraw
This is a dilemma faced by al investors. The answer lies in your fund performance. Follow the performance of the fund you have invested in. If the fund is not performing satisfactorily for https://rik88.bet/
https://1go88.vip/ less than a year, it could be the market fluctuation affecting it but if the performance is unsatisfactory for more long period than, you should consider looking for a better fund.
Apart from the performance parameter, you should also check the portfolio of companies in which the fund has invested and their prospective performance. Another good strategy is to compare your mutual fund’s performance with similar mutual funds. So be careful when you decide to redeem your SIPs investments and identify alternative funds.
Investment horizon
The longer one invests through SIPs in mutual fund has potential for long term risk adjusted returns. Generally, consider investing in SIPs for a period of five years or so. It has been observed that generally it takes at least five years to average out the losses and market risks and the power of compounding. A market correction phase does not mean one should redeem those funds. Rather, view it as an opportunity to purchase more funds at a lower price.
To conclude, one can suffer losses while investing in mutual funds but there is no need to panic and make a hasty decision.