As soon as the market moves a little, WhatsApp messages start pouring in, and it happens every time. When the Sensex slipped after Trump's new tariff threat, one investor asked, "Should I stop my SIP?" To this came a suggestion, "The market is uncertain; should we wait and see?" This pattern is as common as it is harmful. As soon as the market becomes volatile, SIP suddenly becomes an option for some people. In this regard, Dhirendra Kumar of Value Research Online.com tells what investors should do. Read his article.

This week's panic over US trade policy is a perfect case study to understand how investors damage their plans. Trump's announcement of imposing a 25 percent tariff on Indian goods and the threat of further penalties have filled investors with such uncertainty that they have decided to 'stop' everything. The Sensex has fallen a lot from the recent highs, and suddenly these investments start looking vulnerable for fear of falling further prey to the decline.

But this tendency to stop Systematic Investment Plans (SIPs) during market volatility shows a lack of understanding of the basics of the scheme. The whole concept of SIP is based on the idea that you cannot predict the market, so you invest slowly over time to reduce the impact of volatility. Stopping SIPs during a downturn does not protect you from losses; but rather, it is abandoning the process that was designed to turn volatility into opportunity.

The psychological emotion behind stopping SIPs is understandable, but it is misguided. No one likes to see their portfolio dwindle, even for a short time. In the face of uncertainty, it is human nature to do something and stopping SIPs feels like taking 'control'. But in reality, it is like choosing immediate emotional relief over a sensible long-term strategy. As I have written earlier on SIPs, its real value lies not in calculations but in practice.

I had written that SIP works because it matches the nature of your income and once started, you are less likely to stop it. The irony is compounded when you see that people who stop SIPs in difficult times usually do not start again at the right time.

They wait for 'clarity' or 'market stabilisation', which usually happens when prices have already gone up and the opportunity to invest at a cheaper price is over. The next time a market headline makes you doubt your SIP, remember - keep investing even when others stop. This is the discipline that sets long-term successful investors apart from the rest.

Remember these things - Market volatility is a feature, not a flaw. Stopping SIPs in a downtrend destroys rupee cost averaging and creates the need for expensive entries in the future. - Think of it like a monthly installment. Treat SIPs as a monthly responsibility. - Make changes, but don't quit. If you are nervous, rebalance or increase your SIP. But do not turn off this compounding machine.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.