moneyinvestmentandfinanace

[moneyinvestmentandfinanace]

The Power of Compounding in SIP Investments

People start investing in SIPs to earn higher returns and fulfill their goals. But people are at times worried about their returns. When the market goes down, they get worried about their returns. They doubt if their SIP will give a negative return. In this article, we will understand about the same in detail.

Can SIP give Negative Returns?

People save their hard-earned money and invest in SIPs. They align it with their goals and have expectations to earn good returns on maturity. But at times they fear about their SIP investment. They fear that their SIP will give negative returns.

You invest in SIP at regular intervals with small and regular amounts. But it never assures you about the returns. The return on investment in SIP can have negative returns.

Your investment can’t go negative. This means that you can’t owe money to someone due to investment. But yes, your SIPs investment can have negative returns. You can check the SIP returns with the help of the SIP calculator.

What to do if SIP gives Negative Returns?

Now you know that SIPs can give negative returns. Now let’s understand how to deal with negative returns of SIP.

Avoid Actions in Panic

If you are facing loss due to negative returns you may feel panic. But don’t take any decision in this panic situation. You need to understand that whatever loss you have is a notional loss. Until and unless you don’t exit from SIP it will remain a notional loss.

Hence when the markets will recover this loss will reduce and you can also earn profit. Moreover, you need to understand that if you redeem the SIP during negative returns then you will have a loss. Whereas staying invested for the long term can make you gain profit.

Analyse Your Investments

Before taking any step in this situation analyse your investments. Go through the fundamentals of the securities and assets that you have invested in. Assess the current market situation and how it can impact your investment in SIP.

Remember Your Goals

You start investing in SIP to fulfil your investment goals. When the returns are negative try to understand why did you start the SIP. Remember your goal before taking any decision.

For example, if you have started SIP in equity mutual funds then you need to stay invested for the long term. This ranges from 5-10 years.

Diversify Your Portfolio

If your portfolio is affected by the negative returns of SIP then think of diversifying the portfolio. Think of investing in some investment options that can reduce loss due to negative returns. Also, take care that you invest in such an instrument that has no relation to negative returns. This means that ups and down in SIP shall not have any impact on the investment.

Long term Investing

SIP investment in the long run help to create wealth. It has been observed that the longer the SIP tenure, the less the probability of negative returns. So, focus on the long term when you invest in SIP.

Keep your investment tenure for at least 5 years. Do not stop the SIP due to negative returns. In fact, you would be allocated more units through SIP in down markets.

Conclusion

Times keep changing. And these changing times impact the returns of a SIP. A SIP can have negative returns too. But you shall act smartly and not panic in such a situation. SIP calculator can be used to know returns from a SIP.

#ET Money SIP Calculator App #SIP Return Calculator App

[moneyinvestmentandfinanace]

How you can track your Mutual fund investment?

Whether you invest long-term or short-term in mutual funds, tracking them from time to time is essential for your portfolio. With the help of the Direct Mutual fund App, you can easily track your mutual fund investments anytime and anywhere. If you are wondering why it is essential to track your mutual fund investments or how you can do the same, then this article will help with the same. 

What is tracking mutual fund investment?

Tracking mutual fund investments can be referred to as analysing how the funds are performing in different market scenarios. Whether your investment portfolio is having positive returns or negative returns. Then it is also about rebalancing your portfolio if the asset allocation has been altered due to market movements. 

By tracking the mutual fund investments, you can also keep track of the funds that are offering the highest returns and the ones which are not performing well or offering negative returns. You can easily redeem those funds if you feel so. 

Tracking mutual fund investment also helps you keep track of your investment goals. Suppose, you need to achieve a certain amount by the end of the stipulated period. You can keep a check on how much of the same has been already accumulated by tracking the portfolio frequently with the help of a Direct Mutual fund App like ET Money. 

How you can track your mutual fund portfolio?

If you are using a mutual fund application then tracking your investment portfolio of mutual funds is quite easy. All you need to do is to open the app and on the dashboard, you will see the value of your entire portfolio. 

Now, for checking the individual fund’s performance, you can click on your portfolio and the funds you have invested in will be displayed. You can check each of the funds’ information such as how much you have invested to date, and what is the current valuation of your investment in each of the funds. The profits or the losses for each fund. The return generated by your mutual fund portfolio can also be checked in percentage format along with the other details. 

You can also check the fund’s details by clicking on the fund. If the expense ratio has been changed, you can check by clicking on the fund, the overall return the fund is offering and other details. 

How to use a direct mutual fund app for tracking mutual fund investments?

If you want to track the mutual fund investment using the Direct Mutual fund App, then you need to install the app on your smartphone. You can download and install these apps from Google Playstore or App Store for Android and iOS smartphones respectively like ET Money. 

Once you have installed the app, you can log in to your account. There you can see all the details of your portfolio. 

If you want to rebalance your portfolio, invest more into certain funds, or sell off any fund, you can directly do the same from these applications. 

Benefits of tracking mutual fund investments

Mutual fund investments require less attention however if you do not pay any attention to your portfolio, then you can land in disaster as well. Just keeping a track of your funds can help you optimize your returns and reduce the risks. 

It also helps in the analysis of your investment’s performance and you can rebalance your portfolio if required at the right time. 

With mutual fund apps like ET Money, you do not have to pay any charges as well for investing, or tracking your mutual fund investments. 

Wrapping up 

If you are investing in mutual funds without keeping track of them, your investment can go in vain. By using mutual fund applications on your smartphone, you can check all your funds and make wise decisions about your portfolio. 

#ET Money #Direct Mutual fund App