5 SIP Mistakes to Avoid for Strong Returns

• Avoid stopping SIPs during market downturns; continue investing to buy units at lower prices and reduce average cost.
• Do not withdraw SIP investments too early; allow 3-5 years for compounding to work effectively for better returns.
• Diversify investments across different fund styles and Asset Management Companies (AMCs), rather than multiple schemes from the same AMC.
• Resist frequently switching funds based on short-term higher returns, as this incurs taxes, exit loads, and disrupts compounding.
• Regularly increase your SIP amount (e.g., 5-10% annually) to counter inflation and ensure your portfolio grows effectively over time.

Why It Matters: Avoiding SIP mistakes ensures better long-term financial growth.