1.Many of us start investing in stock market oriented investment schemes only when the stock market starts booming and starts giving good returns. This leads to loss. If the market suddenly starts falling more from the peak, the loss will be higher.
Regular investment in stock market oriented investment schemes is more likely to generate higher returns on average.
2. Never invest in equity funds in bulk. While investing in bulk, the stock market can suffer heavy losses if it experiences a sudden drop.
If you have more total amount then you can invest it in risk free liquid fund and from there you can transfer the investment to Equity Funds through Systematic Transfer Plan (STP) at specified intervals like 12 months, 18 months.
3. When withdrawing profits from a fund, decide in advance what you are going to do next. There is no requirement; If the market goes down further, you can invest the money in liquid funds and then switch to hybrid funds or equity funds to protect your profits and earn additional profits. It would be beneficial to seek the advice of a financial advisor if necessary in this regard.
A simple investment can yield high returns. Also, the behavior of the investor (Investor Behavior) helps in making profit. It can be enhanced by the investment terms and conditions mentioned above.