Should you stop your SIP or continue…???

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Hello Everyone!

Being an investor, the current market movements must be giving you jitters, isn’t it? From last few days, the market has seen a downturn. Almost every other day, the Indian markets are caught in a sinking situation because of macroeconomic & global factors.

The sharp correction in the Equity Markets has led to negative returns in SIPs as well. The question whether to continue or discontinue your SIP must be popping in your head.

Well, being a Financial Planner I would suggest the same thing that other advisors say…don’t be swayed by volatility, instead stay focused on your investment goals!

SIP is a mode of investing in Mutual Funds for long term. A dip in the markets should not be the reason for investors to stop SIP. In fact, it gives them a chance to add higher number of units after a fall. The equity market will go through a number of ups & downs during the SIP tenure but in the long term it will surely rise! It helps the investor to average his cost over a period of time, by fetching more units when prices are low and fewer units when prices are high. In the current scenario, the SIP investor will accumulate more units at a lower price. Therefore, hardcore investors want to sit out and wait for the markets to correct.

Moreover, adding lumpsum purchases in the same folio is a good idea from a long term view.

Many people ask for how long should we continue our SIP….the answer is simple…unless & until you accomplish your goal!

Over the years, you must learn to ignore the market noises & continue your SIPs until you reach your Goal. This inculcates discipline within you & help to build an impressive corpus over the time!

It is always proved that regular investors earn more than those who try to time the market or who loose their nerve!

Thus, don’t get wobbled by the down turns in the market because markets are meant to be that way!
Disclaimer: Mutual Funds are subject to Market Risks. Read all scheme related documents carefully.

More Later…

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