Choosing the appropriate equity stocks in publicly traded firms might be crucial to accumulating wealth in this competitive world of financial investing. It does not, however, offer a quick way to become wealthy; instead, it calls for patience, risk tolerance, and education. The opportunity for profit is real, but so is the risk of losing your actual money in equity markets, which are impacted by anything from world events to technological advancements. Millions are captivated by the promise of equity market rewards, but only disciplined investors regularly generate real money. Choosing the appropriate stocks in 2026 involves more than just luck—a methodical methodology is needed as global equity markets navigate post-pandemic recalibration, AI-driven volatility, and changing interest rate policies. This manual breaks through the clutter by offering practical tactics based on ageless ideas and current market conditions. Recall that only well-informed choices exist; there are no f...
If you invest in SIPs of mutual
funds, then you have to understand the rules of this investment. It is often
seen that the investor sometimes gets scared and withdraws money, which he has
to bear. Take any middle quartile equity mutual fund and take any earlier
10-year SIP period, you will find that their annual return far outstrips all
other asset classes.
Not all investors starting SIP did able
to get returns. If you are an investor who wants to make a successful SIP
investment then these three golden rules can help you.
Rule 1: Understand how things work
Many SIP subscriber who go to SIPs
from fixed return assets like recurring deposits and PFs actually do so because
they are not well aware. Attracting from past returns ranging from 12–14% over
a period of 5–10 years, they assume that these returns are not really going to
be the same. There are countless instances in which SIP returns have been
negative for the first two or three years and these returns exceeded 10 per cent on annual basis weeks or months later. Any investor can start investing on
SIP through open ended fund.
The magic of SIP can only be realized
through patience and discipline. If low returns disappoint you, or you are
investing through SIP with the expectation of continued annual growth, you will
never be able to realize its full potential. So keep in mind that you have to
set a lot when travelling to your SIP.
Rule 2: Don't stop-start-stop
It has often been seen that SIP
subscriber sometimes close and sometimes start SIPs based on the volatility of
the equity market. It is important to know how an investor generally reacts to the
cycle of the market. The boom cycle fills a lot of enthusiasm among investors. Most investors start SIPs when the market is in a boom. Because
those who have been performing in this boom, they like it. But when the cycle
of recession comes, most investors get frustrated and scared. They stop the
SIP.
Such habits prevent investors from
building assets over the long term. Because the biggest benefit, the average
cost of the rupee is not earned at such a time. In fact, stopping and sometimes
starting SIP proves to be very fatal. This hurts you in the long term. You
should understand well that you have to control your emotions. Stopping and
re-starting the SIP can only give a bad return.
Rule 3: Keep your goals in mind
Systematic investments in volatile
growth assets work best when their goals are clear. Interestingly, we have seen
that SIPs with random numbers like Rs 3681 per month continue for a long time
while SIPs with a round figure such as Rs 4000 are less disciplined.
This happens because the SIP of the random amount is chosen with much consideration, keeping in mind your
retirement or education of your child. The SIP with a round figure is started at
any time. For best results, prepare a financial plan before starting your SIP.
Keep track of his progress.
Monthly target SIP required
If you want to retire with 5 crores
in 30 years, then you should invest 14,306 rupees monthly. For the child's
graduation expenses in 15 years, invest Rs 10,008 monthly for the need of 50
lakhs. Invest Rs 15,305 monthly for 20% down payment on a flat of Rs 1 crore in
7 years. (This estimate has been made assuming a CAGR return of 12% per year).
Returns from mutual funds are not
guaranteed. Understand the risks carefully before investing. By doing this you
will be safe from risk and a better investment can be made. This can benefit
your investment portfolio.
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