Mutual funds provide an opportunity to investors to earn through the power of long-term compounding. Association of Mutual Funds in India (AMFI) data shows that the mutual fund industry has added about 9.74 lakh Systematic Investment Plan (SIP) accounts each month on an average this financial year, with an average SIP size of about Rs 3,200. There are over 2.5 crore SIP accounts through which investors regularly invest in Indian mutual fund schemes.
Despite the craze, investment in mutual funds does not guarantee high returns. The reasons are often shallow knowledge and indisciplined approach towards investment. Here is a list of some common mistakes that investors should avoid while investing in mutual funds: