Mutual fund NAVs fall after market crash. Should you top up your SIP?
Yen carry trade and recessionary fears in the US haunting equity investors worldwide, mutual fund investors are worried whether they should book some of the profits or instead gradually increase their SIPs. With the Sensex having fallen 4% from peak, analysts say the market correction provides the investors an opportunity to purchase more units at a lower price.
“Investors with a long-term horizon should strongly consider topping up their SIPs during market dips, as this strategy can significantly enhance long-term returns. Market corrections provide an opportunity to purchase more units at a lower price, which can improve overall returns when the market eventually recovers. By regularly investing through SIPs and taking advantage of dips, investors benefit from rupee cost averaging, reducing the impact of market volatility over time,” recommends Sagar Shinde, VP Research, Fisdom.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-112308357»>Another mutual fund advisor advises investors that topping up of SIP should not strain their financial situation and if they have limited liquidity and don’t want to take unnecessary risks, should continue with regular SIP investments.
“If you have additional funds and a long-term investment horizon, topping up your SIPs during market downturns can be beneficial. Buying more units at lower prices can enhance returns when the market recovers. Ensure
