Nowadays most people prefer to invest their money in mutual fund SIP. This is because by continuously investing in mutual funds for a long time, people can collect a very good fund. However, it is very important to invest for a long time to get good returns in SIP, but most people forget while investing in SIP that SIP is a market-linked. In such a situation, some mistakes can cause a huge loss. Today we will tell you about some such mistakes of investing in SIP, which can harm SIP investors. Let's know.

Investing without understanding SIP

There are many people who do not know about SIP well but still invest in SIP on the advice of others. Let us tell you that before investing in SIP, you must understand SIP well. You should know that SIP is a market linked scheme, which also has risks.

Investing a large amount in SIP for more profit

Many people invest a large amount in SIP to earn more profit from SIP, but sometimes it becomes difficult for them to keep investing a large amount for a long time. In such a situation, start investing in SIP only after looking at your financial condition or your budget.

Stopping SIP

If you invest regularly in SIP for a long time, then it reduces the risk, you get the benefit of averaging. Along with this, you also get the benefit of compounding. In such a situation, do not stop SIP once you start it. This will reduce your profit.

Not paying attention to the expense ratio

Expense ratio is the expense that is taken from you for managing the mutual fund. Many times you think that we will get a return of 15 to 18 percent but expense ratio is also included in it. In such a situation, understand the expense ratio before investing. Expense ratio decides how cheap you will get a fund.