SIP investors aren’t even flinching at market slump! Are you one of them?
market volatility and benchmark indices down by 6% in February, the mutual fund monthly SIP inflows have declined by just 2%, which the market experts considers a natural tendency and behaviour of anyone to panic during the volatile market and SIPs are reduced or stopped.
“It is a natural tendency and behaviour of anyone to panic especially when there is a lot of negativity in the media, both television and social media. It is generally seen that SIPs are reduced or stopped by those investors who do not have any access to a personal financé professional,” commented Rajesh Minocha, a Certified Financial Planner (CFP) and founder of Financial Radiance.
“For long-term investors, this is actually a saving grace when valuations of stocks have gone past their intrinsic value and now are correcting. Such phases are the best times to stay invested through SIPs. The market's volatility allows investors to accumulate more units at lower prices for future benefits,” he further mentioned.
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