1. After having linked an SIP investment with a particular financial goal, you shouldn't believe that it will work itself out.
2. Although an SIP should be for a long period to harness its full potential, don’t continue with it indefinitely without checking on its individual performance against peers.
3. You must review it periodically to assess how it is doing, whether it is suitable for your needs and financial goals.
4. While monitoring the fund, do not look at the performance of the scheme in isolation, but compare it over different time frames with other schemes in the same category.
5. Only if the fund is consistently under-performing the category should you consider switching over to another scheme.
6. Also, keep an eye out for any undesirable change in the fundamental attributes of your scheme, such as a rise in the expense ratio, revision in the investment mandate, investment style or changes in its team.
7. One should also have a clear time horizon in mind while investing without bothering about intermittent volatility.
8. Investing only to make money is a vague idea, and if you link it with the goals in mind, you will have a better idea and know when to exit.
9. You should also consider weeding and re-balancing when:
a) Your allocation is way off the mark.
b) You’re experiencing major gains/losses.
c) Your goals have changed over time.
d) You’ve withdrawn funds recently.
e) You need funds for short-term returns.
f) Your risk profile has changed.
g) Your investments are under-performing and can be replaced with better options for the same goals.
2. Although an SIP should be for a long period to harness its full potential, don’t continue with it indefinitely without checking on its individual performance against peers.
3. You must review it periodically to assess how it is doing, whether it is suitable for your needs and financial goals.
4. While monitoring the fund, do not look at the performance of the scheme in isolation, but compare it over different time frames with other schemes in the same category.
5. Only if the fund is consistently under-performing the category should you consider switching over to another scheme.
6. Also, keep an eye out for any undesirable change in the fundamental attributes of your scheme, such as a rise in the expense ratio, revision in the investment mandate, investment style or changes in its team.
7. One should also have a clear time horizon in mind while investing without bothering about intermittent volatility.
8. Investing only to make money is a vague idea, and if you link it with the goals in mind, you will have a better idea and know when to exit.
9. You should also consider weeding and re-balancing when:
a) Your allocation is way off the mark.
b) You’re experiencing major gains/losses.
c) Your goals have changed over time.
d) You’ve withdrawn funds recently.
e) You need funds for short-term returns.
f) Your risk profile has changed.
g) Your investments are under-performing and can be replaced with better options for the same goals.