Common Mistakes Beginners Make
- Waiting for "right time": There's no perfect time. Start now, even with ₹500
- Stopping during market falls: This is when you buy cheap - never stop SIP in crashes
- Over-diversifying: 2-3 funds are enough. More funds = complexity, not safety
- Chasing past returns: Last year's top fund may not be this year's. Stick to basics
- Starting too big: Better to start small and sustain than start big and quit
When to Increase Your SIP
- After salary hike: Put 50% of your hike amount into SIP
- After bonus: Add one-time lumpsum or increase base SIP
- After debt payoff: Redirect EMI amount to SIP
- Annually: Even 5-10% increase makes huge difference over 15-20 years
Frequently Asked Questions
What's the minimum amount to start SIP?
Most funds allow SIP from ₹100-₹500. However, ₹500-₹1,000 is more practical. Start with what you can afford without stress - even ₹500/month builds the discipline habit.
Should I start with one fund or multiple funds?
Start with ONE fund. A diversified equity fund (Flexi-cap) or Nifty 50 index fund gives you broad market exposure. Add more funds only after you understand the basics, typically after 1-2 years.
Is ₹1,000 SIP enough to build wealth?
Yes, but it takes time. ₹1,000/month for 25 years at 12% becomes ₹19 lakh. Start with ₹1,000 if that's what you can afford, but increase it whenever possible. The key is consistency over amount.
How do I choose my first mutual fund?
For beginners: (1) Nifty 50 Index Fund - lowest cost, tracks market, (2) Flexi-cap Fund - professional management, diversified, or (3) Large-cap Fund - stable, blue-chip companies. Avoid sector/thematic funds for first investment.
What if I can't afford SIP for a month?
Missing one or two months won't derail your goals. SIP continues automatically next month. Don't stop SIP permanently - pause is okay, but restart as soon as possible. Emergency fund should handle temporary income gaps.