Today, most investors invest in mutual funds through SIPs (Systematic Investment Plans). This is because it allows you to invest in installments, so your investment amount has little to no impact on other expenses. While people invest enthusiastically in mutual funds due to their attractive returns, they also exit just as quickly.

This is because it's not guaranteed that you will always get attractive returns from mutual funds. Some funds even cause investors to lose their money. Today, we will tell you about 5 reasons (Why Mutual Fund SIPs Stop) why people are stopping their mutual fund SIPs.

1. Expecting Quick Returns
Investors often consider SIPs as short-term investments. However, the benefits of SIPs are realized over the long term. It has been observed that if a fund doesn't deliver the expected returns in 6 months or a year, it is considered worthless. Patience is crucial in mutual fund SIPs.

2. Increasing Expenses
Investors initially invest large amounts of money enthusiastically. But later, their increasing expenses outweigh their investments. In such situations, they have to stop some of their SIPs. To determine how much to invest in SIPs based on your salary, you can use the 50:30:20 formula:

50% - For essential expenses

30% - For hobbies or discretionary spending

20% - For savings or investments

3. Market Downturns
When the stock market experiences a continuous decline, fear sets in among investors. However, this is the best time to invest. You can buy more units of the fund at the same investment amount during this time. Therefore, withdrawing money from SIPs due to fear of a market downturn is not advisable.

4. Completion of SIP Tenure
Most investors in mutual fund SIPs invest for 3, 5, or 7 years. The investment period also depends on individual needs. After the investment period is complete, few people consider extending it. This is because they invested for a specific purpose, such as their child's education or marriage.

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