4 Reasons To Continue With SIPs In Turbulent Markets
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During falling markets or turbulent markets, the fear of losses makes many investors make the mistake of exiting their systematic investment plans (SIPs) from mutual funds. Here are four reasons why you should stay invested in your SIPs even in bad market conditions.
Avoids losses from premature exits You could end up worse off with an exit since equity funds typically reward investments over 8-10 years, or more.
Helps exploit market conditions SIPs make you buy lesser number of units when markets are at a high and more units when they are low. Over time, this brings down the average cost of buying units and helps enhance gains. A market downturn helps you buy units at a lower price and actually helps you post even larger gains in the future.
Provides uninterrupted benefits of compounded growth Regular investments help you benefit from your money’s compounded growth. Premature exits deprive you of this great advantage. Staying invested in your SIPs will ensure that your money keeps growing without interruptions; more so for typically high-growth equity funds.
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