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Tips To Get the Most from Your Equity Mutual Fund SIPs In 2022​

Rome was not built in a day; it was built with systematic contributions and steady habits over the years. Similarly, it may also take time for you to accumulate your corpus to meet your financial goals. Investing methodically with SIPs over time could be one of the best ways to achieve that goal. A systematic investment plan (SIP) enables you to invest in a mutual fund of your choice through monthly, quarterly, or annual investments. SIPs can be helpful with investing in an equity fund in India. If you are planning to make investments through SIP, you may want to keep the following tips in mind:

1. Use SIPs to deflect market volatility

Market volatility refers to highs or lows in stocks and other securities’ prices. It can happen due to political events, global pandemics (Covid-19), etc. Fundamentally, SIPs can offer better returns when the market volatility is high. By choosing SIPs, you can invest a fixed amount of money irrespective of the market’s performance. It lets you benefit from rupee cost averaging. You do not have to time the market or wait for the bullish momentum. Rupee cost averaging automatically averages out the cost by buying more units when the markets are low and fewer units when the markets are high.

You can use mutual fund services such as a SIP calculator and pick a suitable SIP amount for your equity mutual funds.

2. Invest for the long term

Equity markets can be highly volatile in the short run. Therefore, investing for the long term can be a good strategy for an equity fund in India. It can also help you maximise your returns as it offers you the advantage of compounding — you earn returns on your principal amount, and these returns are reinvested. You may also use a goal planner to assess investment options for various long-term goals.

3. Do not skip the SIP

For equity funds in India, consistency is one of the essential requirements of investing through SIPs. A long-term investment horizon of at least two market cycles or 8-10 years would be an ideal investment. Skipping an SIP instalment can impact your overall returns.

4. Keep the emotions away

SIPs help to take emotions out of the equation, as they ensure your money is invested at your chosen frequency, irrespective of the market performance. It may work to your benefit to not get perturbed by the cyclic ups and downs of the market. Remember that the cost of your investment will be averaged out in the end.


SIPs can be an excellent method of investing for long-term investors. However, it may help to keep these tips handy to increase the chances of a better yield and not worry over market volatility.


1. Is it good to invest in equity mutual funds?

Equity mutual funds can be a good option for long-term goals. Despite having higher risk, they have the potential to deliver higher returns, and you may benefit if you are investing for a long-term goal like retirement, children’s higher education, home purchase, etc.

2. Do equity funds have a lock-in period?

Typically, all equity mutual funds schemes charge an exit load if the investment amount is redeemed within one year of investment. However, in the case of the Equity Linked Savings Scheme (ELSS), it has a lock-in period of three years. Other specific category schemes like retirement funds also have a lock-in of 5 yrs.

3. Can we redeem equity mutual funds anytime?

Yes, barring ELSS, which has a lock-in period of 3 years or retirement funds (which may have a lock-in period of 5 years), you can redeem your equity mutual funds anytime. However, you may be charged with an exit load. So, remember to check the charges and then take a call.

Disclaimer: The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.

Disclaimer: The above results are based on an assumed rate of return. Please get in touch with your professional advisor for a detailed suggestion. The results are based on an assumed rate of return. The calculations are not based on any judgments of the future return of the debt and equity markets / sectors or of any individual security and should not be construed as promise on minimum returns and/or safeguard of capital. While utmost care has been exercised while preparing the calculator, NIMF does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate anddisclaimsall liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator. The examples do not purport to represent the performance of any security or investments. In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax/ financial advisor before taking any investment decision.

Mutual Fund Investments are subject to market risks, read all the scheme related documents carefully.

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