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SIP Customization Tips To Gain Maximum Returns

With SIP or Systematic Investment Plan, you get the ability to bring discipline in your mutual fund investment. These types of schemes allow you to invest a fixed amount regularly, which helps in attaining long-term results.

Though SIP plans require fixed investment, you can customize your scheme to get better outcomes. A SIP scheme offers maximum returns over a period of time, working on the principle of capital appreciation. But the returns can be enhanced with customization.


Hence, this article offers a few customization tricks to get higher returns.

1. Include sufficient number of schemes in your portfolio
 
With a fixed investment, your ability to gain returns gets limited at times. However, you can enhance your gains by diversifying your portfolio with multiple schemes. Still, it is important to keep the number of schemes under control. Generally, the investment experts advise investing in 2 to 5 funds together in SIP.

When you are selecting the mutual funds, try to cover multiple sectors. Targeting a single sector with multiple schemes does not distribute the investment risk. All your funds rely on the mercy of one single market sector, which increases the risks. The best systematic investment plan understands that real diversification comes when you combine schemes that belong to different sectors.

2. Design a long-term investment plan
 
Many people feel excited to start their investment, but a little bump in the market makes them worried. If you are one of those people, then you need a long-term SIP plan. The whole foundation of systematic investment is to bring safety and protection to your investment.

All you need to do is plan long-term investment. The volatility in the market will get covered with time and diversification. Hence, make sure you customize your investment strategy for a longer period.

3. Make your existing SIP stronger
 
As your income grows, your ability to invest get enhanced. You can save more and invest in more SIPs. However, it would be wise to focus on the existing SIP rather than getting new plans. You can increase the amount you are depositing every month in the existing plan. Keep on increasing a certain percentage every year and your investment portfolio will keep on growing.

4. Decide different investment dates for the schemes
 
The market volatility affects your schemes indirectly. But you can learn to play with the ups and downs in the market. Many smart investors divide their investment dates into different dates of a month. This way, if the market faces a downfall on a day of a month, you get to save most of your funds.

5. Apply your withdrawal plan at the right time
 
To get the maximum advantage of a SIP, you need to choose a perfect time to apply your withdrawal plan. The best systematic investment plan is the one that takes you to your financial goals. And when you reach those goals, it is important to withdraw a fixed unit from those funds. Otherwise, you can skip the safest and maximum peak of the returns.

It is clear that these are power packed tips to help you choose the right mix of plans in your SIP portfolio. You can apply these pointers to customize your SIP and reach your financial goals with ease via systematic investment.
SIP Customization Tips To Gain Maximum Returns SIP Customization Tips To Gain Maximum Returns Reviewed by Dhanur Chauhan on 4:47 PM Rating: 5