Should you time your equity mutual fund SIP or let it continue normally? Here’s what experts say
Kalpesh Ashar,CFP, Sebi RIA:“Consistency is the key to success in investing”
SIPs have helped retail investors build wealth. What started as a simple strategy to invest regularly, without straining monthly budgets, has now become a financial habit.
The key to SIPs’ success lies in staying invested through all market conditions rather than trying to time the market. Historical data shows that consistently investing, regardless of volatility, yields better results. Pausing or stopping SIPs during downturns goes against the very principle of this strategy and can be detrimental to wealth creation. In fact, volatile markets present an opportunity to accumulate more units at lower valuations, which can enhance long-term returns.
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For those invested in midand small-cap funds, proper allocation based on individual risk appetite is crucial. If approached wisely, these funds can play a significant role in generating higher returns within a mutual fund portfolio.
Ultimately, SIPs provide a disciplined approach to investing, allowing retail investors to systematically participate in the market. Rather than attempting to time investments, staying committed to SIPs can lead to more consistent and rewarding financial growth. Consistency is the key to success in investing.
Aashish Somaiyaa,CEO, WhiteOak Capital AMC:“Volatility helps improve the average returns”
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