5 mistakes to avoid if you want higher mutual fund returns
Have clear long-term goals when investing in mutual funds - Short-term focus often leads to poor decisions during market fluctuations.
Invest adequately towards your goals - Calculate the required investment amount to achieve your target corpus. Under-investing will lead to shortfalls.
Maintain consistency with SIPs - Stopping or pausing SIPs disrupts compounding. Continue investing through market ups and downs.
Avoid reacting to market crashes - Use crashes as an opportunity to accumulate more units at lower valuations. Don't withdraw investments in panic.
Don't chase top performers - Performance chasing leads to frequently changing schemes. Allow 2-3 years to evaluate a fund's performance before considering a switch.