Vijay Rajaram Dinkar
Author
1. Chasing last year's top performer. A fund that topped the charts last year may not repeat that performance. Past returns are one data point, not a promise.
2. Stopping SIPs when markets fall. Market dips are exactly when a SIP buys more units at a lower price. Pausing during a downturn often works against the strategy's own purpose.
3. Ignoring the investment horizon. Putting short-term money into equity funds — or long-term money into low-growth options — mismatches risk with your actual timeline.
4. Not diversifying across fund categories. Owning five funds that all invest in a similar way isn't real diversification.
5. Skipping the fine print. Exit loads, expense ratios, and lock-in periods all affect your actual returns — they're worth understanding before you invest, not after.