Stopping SIP

Ratin Biswass / 20 Mar 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

As the Indian stock market is on a downward spiral and mutual fund returns are also falling

As the Indian stock market is on a downward spiral and mutual fund returns are also falling, should I stop my SIP now? - Shreeyan Pandhare [EasyDNNnews:PaidContentStart]

Editor Responds : Thank you for writing to us. Stopping your Systematic Investment Plan (SIP) during a market downturn may not be wise. Market fluctuations are a natural part of investing, and mutual funds are designed for longterm wealth creation rather than short-term gains. When markets decline, SIPs offer the advantage of rupee cost averaging, allowing you to buy more units at lower prices. This reduces the average investment cost and positions your portfolio for better growth when the market recovers.

Historically, markets have always rebounded after downturns, rewarding patient investors. You can maximise your returns over time by staying invested and continuing your SIPs. On the other hand, stopping your SIP during a downturn means you might miss out on the recovery phase, which is often when the biggest gains occur. Remember, staying consistent in your investment approach is key to long-term wealth creation.

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