Stock Markets Remain Volatile: Is this the right time to increase your SIP amount?

financialexpress.com:

India’s stock markets have been highly volatile over the past couple of weeks. Given the current economic scenario and market conditions, many investors are contemplating whether it’s the right time to increase their SIP amount.

It may be noted that Systematic Investment Plans (SIPs) allow investors to systematically invest a fixed amount in mutual funds regularly. This strategy helps in averaging the cost of investment and mitigating market volatility over time.

Since investing is a long-term game, long-term investors should not fear the short-term maket volatility. With the Indian economy expected to grow at a healthy pace, increasing your SIP amount could be a wise decision to capitalise on long-term growth prospects.

The stock market has demonstrated resilience and growth, with indices like the Nifty 50 and the Sensex reaching new highs. While markets are inherently volatile, the long-term trajectory tends to be positive, driven by strong corporate earnings, favourable demographics, and increasing investor participation. By increasing your SIP amount now, you can benefit from compounding returns over the long term, leveraging market dips as buying opportunities.

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Inflation has been stable and remains a crucial factor influencing investment decisions. Rising inflation erodes the purchasing power of money, making it essential to seek investment avenues that offer returns beating inflation. SIPs in equity mutual funds have historically provided inflation-beating returns. Furthermore, with interest rates remaining low, traditional savings instruments such as fixed deposits are offering lower returns, making equity SIPs an