So, if you are investing in equity funds through SIP, you save a part of your income every month, avoid timing the market, benefit from averaging and if you stay committed to your time horizon, you also benefit from the true potential of equity as an asset class and the power of compounding. However, to benefit from this disciplined and potentially rewarding approach, you must follow the right investment process. A random approach can either expose you to unwarranted risks or disappoint you in terms of returns.
Remember, you won’t achieve your investment goals by following a haphazard approach of investing a random amount that is either not enough to achieve your goals or exceeds your capacity to invest, thereby compelling you to interrupt your investment process. Ignoring your asset allocation while selecting funds will make your portfolio either very aggressive or very conservative. Investing in too many funds, continuing with the same amount of investment despite rise in your income over the years and not tracking the performance of funds thinking that over time all funds do very well are some of the other pitfalls that can impact the final result.
この記事は Dalal Street Investment Journal の March 30, 2020 版に掲載されています。
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この記事は Dalal Street Investment Journal の March 30, 2020 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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