SIP Best Strategy: There are different categories of investors in the market, for example, some may be aggressive i.e. one who can take high risk and some may be moderate i.e. one who can take low risk. There are also conservative investors, who do not want to take any risk at all. However, if you want high returns on your investment, then you can choose equity scheme by taking light risk. And one way to get high returns at low risk is SIP in mutual funds. SIP is an option through which you can make regular investments in a mutual fund scheme on a monthly basis.
SIP Power: Biggest scheme in equity midcap, SIP in this scheme of HDFC Mutual Fund is giving 21% annual return.
Why do investors start getting worried?
Although there are chances of getting high returns over time in investments made through SIP, it is also possible that this strategy may not work for a few months. Or it may also happen that the returns of your SIP portfolio may become negative for some months. In such a situation, many investors start getting nervous and they start withdrawing their money fearing huge losses. But instead of panicking here, if you follow some mantras of veteran investor Warren Buffett, then your SIP strategy can become a superhit.
SIP Magic: This scheme gave Rs 4 crore to those who saved Rs 1500 monthly, became the champion of SIP by giving 24% CAGR returns in 29 years
If not 10 years then not even 10 minutes
Warren Buffett says that if you cannot hold an investment for 10 years, then do not think about holding it even for 10 minutes. That is, what they mean is that if you are investing then make a long term goal. Investing for the long term makes you a successful investor in most cases. If we look at the returns of equity schemes in mutual funds, most of them have given annualized returns in double digits over a period of 10 years.
You will get shade only if you plant trees
He says that if you want the shade of a tree, you will have to plant that tree years ago. That means, invest only after thinking about the long term. Instead of becoming a day trader, come into the market with a long term goal. Wait until the goal is accomplished, money grows only by maintaining patience.
High Return in SCSS: Deposit retirement fund here instead of bank, you will get 12 lakh interest in 5 years, deposited capital will also be safe
Don’t be greedy for high returns
Warren Buffett says that if you can see 15 to 20 percent return in an investment in the long term, then invest. By getting confused by greed for too much return, you cause harm to yourself. Believe in yourself that you can become a successful investor.
Do not check portfolio frequently
Warren Buffett says that checking the value of the portfolio again and again after investing is a wrong strategy. Market fluctuations are a natural phenomenon, which happens from time to time. So be patient, your portfolio will become stronger in the long run.
Low Return in SIP: SIP strategy lags behind in these mutual funds, are not able to beat even FD in returns.
When should you be greedy?
Warren Buffett says that when others are afraid to invest money in the market, you become greedy. At a time when everyone is becoming greedy, you should be patient and take a decision after thinking carefully. Being afraid of market decline is not the right strategy. There can be no better or worse time to invest. There is always an opportunity to invest in the market.
Advice from a qualified financial advisor
Warren Buffett says that if you want to become a successful investor then take the help of a capable financial advisor i.e. keep taking advice from him. Always keep an eye on opportunities, which can be found anywhere in the world. Opportunities can exist in any industry. The most important thing is to be patient.
(Source : Financial Blogs)