Why Mutual fund investors keep faith in SIPs despite market volatility


As said by some wise men that sometimes good things come in disguise. When the entire world market is gripping with fear and panic, it is bound to the panic investor as well. But mature and seasoned mutual fund investors need not to worry for the dips as they will see this as a rare opportunity to buy more mutual fund units and pool in more at a cheap price.
One always looks for best products at discounted offers, be it clothes, electronics, vegetables, or stocks. We all tend to add certainly scheme to our watch list so as to monitor them for low prices and hit the purchase button when it reaches the desired NAV, but how often do we get such opportunities’?
Warren buffet has beautifully put it, “Someone is sitting in shade today because someone planted a tree a long time ago”, which simply means that it might take some time to reap benefits but the future shall be sweet. This is true for all those smart & seasoned investors who take this global COVID – 19 outbreak and gripping the world economy as a rare opportunity to put in money in mutual fund investments, staying invested and reaping benefits at long term.



SIP or Systematic Investment Plan can be a blessing in disguise. Investors should not take out the money in negatives as it would because a loss to their portfolio, instead, one can follow some simple tips.
You may pause for some months – You may consider pausing your SIPs for some months after considering your needs and salary.
Extend the investment period – To overcome the lows, you may extend the period of your SIP.
Invest in Lumpsum during dips – You may invest in the dips in lumpsum whenever it suits, to gain max units for long term
Monitor regularly - Monitor your investments regularly & plan.

Nothing in the world is constant. This situation might take some time to turn but it will. Think of the times of market crash of 2008 – 2009, when the recession hit the lives of all but the wise investor stayed put and benefited when the market revived post this period. One should remember that the world economy is gripped because governments are trying to safeguard their citizens by putting lockdown and some strict social distancing measures. Once the trajectory of the cases dips down, things will automatically fall into its place.
The requirement of such times is “Patience” & it’s the only key to staying on track!




Location: India

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