5 Mutual Fund SIP Secrets While Planning Your Investments

Published : 16 August 2023

By : Sachin Gupta

Systematic Investment Plans (SIPs) in mutual funds help you be consistent and disciplined with your investments. 

Here are 5 mutual fund SIP secrets you should know while planning your Investments.

Don’t focus on timing the market

The goal should be the attainment of your financial goals. So, stay invested. 

SIPs can help save taxes. 

You can get tax benefits under section 80C by investing in ELSS funds. 

Step-up SIPs are great. 

They help you build a large sum without straining your pocket. As your income grows, increase your investment amount annually by 10%.  

Compounding returns.

It is the latter stage of your SIP investment that pockets higher compounding returns due to leverage of a large aggregated sum. So, be consistent.  

Returns > Expense Ratio. 

While the expense ratio should be considered, returns matter the most. Higher returns can compensate for a little higher expense ratio. So, make an informed decision.