Equity mutual fund SIP is not for
short term.
Instead of tenure of 12 month (1
year), you should consider a minimum tenure of 10 years. The power of equity
& compounding can be realised only over long term.
You are evaluating your SIPs
a should only look at 3 year, 5 year and 10 year averages of a fund’s
performance.
Equity mutual funds are capable of
providing about 18% over long term; which is almost double the return of what
bank FDs (fixed deposits) can offer you.
