By Admin 
Investment Tips: SIP has become the most popular means of investment today. People believe that better returns can be obtained in this. But this is not necessary, because if you invest in SIP without thinking, then it is not going to give you any special returns. In such a situation, it is very important to choose the right scheme for better returns.
How to choose the right investment?
Before investing, decide your goal, time period and risk appetite. Equity or index funds are considered good options for long term, while hybrid funds may be better for those seeking less risk. Also check the past performance of the fund, expense ratio and record of the fund manager. Regular SIP started with small amount can create a big fund in the long run.
It is very important to choose the right investment scheme before starting SIP. Here we explain in detail how to choose the right scheme and how to invest.
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decide your goal
First decide what you are investing for, like whether you want to buy a house, for children’s education, for retirement or for a car or travel. Because the longer the goal, the more equity funds can be chosen.
investment period
How long do you have to invest? That means, in how much time can your goal be accomplished? That means, if you invest for 1 to 3 years then debt or hybrid funds are better. If the investment plan is for more than 5 years then equity mutual funds are considered better.
understand the risks
It is also very important to understand the risk before investing. If you are afraid of market fluctuations, you can choose options like balance advantage fund, hybrid fund. If you want higher returns then you can invest in flexi cap fund, index fund, large and mid cap fund.
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View past performance of the fund
Before investing, please check the past performance of whatever fund you are taking. Do not just look at the returns of 1 year, but look at the performance for 3 to 5 years and also look at the performance at the time of market decline.
Start SIP early
Funds should always be started early, one can start even with a small amount. Compounding gives big benefits over time. For example, if a person deposits Rs 5,000 every month as SIP for 20 years and gets an average return of 12%, then the potential amount will be around Rs 50 lakh.