With equity benchmarks Sensex and Nifty plunging more than 10% from their peaks in September last year, it’s natural for mutual fund investors — especially those investing through the SIP (Systematic Investment Plan) route — to question whether they should continue their investments.
Market volatility often creates anxiety among SIP investors, even when they are well aware of benefits like rupee-cost averaging. SIPs allow investors to purchase more units of a mutual fund when prices are low and fewer units when prices are high, averaging out the cost of investment over time. However, being aware of the concept is one thing, and having patience during real-life market downturns is another thing.
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As the second half of 2024 witnessed continuous market fluctuations, with no signs of stability even in the first two weeks of 2025, many mutual fund SIP investors might have one question on their minds: Should I stop my mutual fund investment?
So, is it finally time to stop SIPs or is this an opportunity to take advantage of the market dips and continue investing?
‘Market turbulence should never be the reason to stop an SIP’
Experts believe that a falling market should never be the reason to stop an SIP; however, it’s important to take a pause and evaluate whether you have invested in the right mutual fund schemes. Remember, SIPs are just one way of investing; ultimately, your money goes into a fund, and therefore, it’s crucial to ensure that you’re invested in the right fund that aligns with your financial goals and risk tolerance, according to them.
They suggest that if invested in the right fund and your wealth allocations are on track, continue your SIPs. Some experts may even recommend adding more funds over time to further diversify your portfolio. But, if you’re not in the right fund,
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