I invested in my college in the mutual fund – SBI emerging growth fund SIP of 1000₹ from 2013 at 48₹ NAV. In 2017 I sold at 100₹ NAV.Total investment was roughly 60000₹ return was 120000₹.SIP for long-term always works.
Invest with your own research, Yes invest with your own research. What is Mutual Fund Investment – Why to Invest In Mutual Funds.
Investment in the mutual fund is like having a daily yoga routine or an exercise program. Over time it gives remarkable results. And just like the above examples make you healthy, investment in mutual funds makes you wealthy.
Before writing this post, I have assumed that you are working somewhere having a constant income and ready to invest minimum 4k to 5k every month, based on above I am making the following assumptions.
You have sufficiently long time horizon of investment. Long term means atleast 5 years or more. That gives these mutual funds time to play out and give results. It is possible that the markets may dip in the short term – but don’t lose heart and stay invested.
You have no immediate and urgent needs for cash. If so, ensure that you park such an amount in liquid or short-term mutual funds.
You maintain an emotional balance (almost like a Yogi) about ups and downs of investments. Investment in mutual funds over the long run yield better returns as they average out the cost of units over lows and highs. But you need to stay invested.
Lastly, you invest in your SIPs via Direct Mutual Funds. This alone can generate additional growth of 40% over the long run as you eliminate annual commissions of about 1% per year. Compounding of such commissions can cause a serious dent in your nest egg.