Should I Keep Doing SIPs in Mutual Funds Right Now?
I saw in the news that the Indian stock market dropped quite a bit recently because of rising oil prices and some global tensions.
As a regular investor who puts money every month into equity mutual funds through SIPs, I’m feeling a little worried and unsure whether to continue or pause for a while.
Many people say it’s smart to keep investing during dips, but with all this news flows, what should someone like me do to grow my savings safely without taking too much risk?
Is there any simple advice for normal investors who just want steady long-term growth?
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Yes, the recent market drop is worrying a lot of us regular investors.
It feels scary when your monthly SIP money seems to be buying into a falling market, and you wonder if pausing would protect your savings from more losses.
The smart move for most people is to keep the SIPs running without a break.
SIPs perform best in tough times. The best time for the SIP is during a falling market. SIPs do not work as well during times when the market is only going up.
For safe long-term growth, one can do the following:
- Stick to diversified equity mutual funds and focus on the 5-10 years ahead. Do not worry about what the daily news is reporting.
- If you are new to equity investing, don’t try to time the market. More often than not, it will backfire.
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