Return depends on which, Market or You?
Mutual Fund/SIP Returns are Not decided by the Market, they are decided by Investor Behavior When it comes to investing in mutual funds/SIP, most people believe that returns are solely decided by market performance. But in reality, your behavior as an investor plays a bigger role in determining your actual returns than the market itself . Yes, the market dictates the fund’s performance , but your decisions determine how much of that performance you actually capture. 1. Market Returns vs. Investor Returns Market Returns : It is the gains or losses a SIP delivers over a specific period based on market conditions. Investor Returns : The actual returns you earn, depends on when you enter, exit, and how consistently you invest. A high-performing mutual fund/SIP also deliver poor returns if you buys at the peak and sells during a downturn due to fear. Whereas a disciplined investor can earn great returns even in a volatile market. 2. The Real Decider - Investor Behav...