Here are the ways in which you can maximise the returns from your systematic investment plan (SIP) in a mutual fund

Stay Invested Over Full Cycle

Many people terminate an SIP when the market falls. By doing so, you forego the chance to buy more units at a lower price, which can yield a good return when the market turns around.

Link SIPs to Financial Goals

Prioritise your financial goals, fix a time frame and quantify each goal in terms of the corpus. You can make SIP investments as per each goal, depending on the time horizon and risk profile.

Stagger the Investment

Fund houses al low SIP investments on specific dates of a month. If you have multiple SIPs, it would be better to stagger the pay out over the entire month. In this way, you retain liquidity.

Step up Your Commitment

Your need for funds will in crease over the years due to inflation. Having a step-up SIP approach, where you hike the monthly commitment every year, will ensure that you keep pace.

Systematic Transfer Good

To ensure funds for SIP, maintaining a big balance is not advisable as it does not fetch high returns. Instead, you should set up an STP from a liquid fund to the chosen equity fund.