The major indices of the Indian stock market, Nifty and Sensex, have recently come down after reaching their all-time high. In such a situation, many investors are confused about whether to continue or stop their SIP investment. Market experts are of the opinion that there is no need to panic and it is wise to continue SIP.
Nifty 50 has fallen by about 1,100 points from its record level of 26,373, while Sensex has fallen by about 3,800 points from its highest level. This decline has definitely increased the concern among investors, but experts are considering it as normal fluctuations of the market. Gurmeet Singh Chawla, Director, Master Capital Services Limited, says that the biggest strength of SIP comes to the fore when the market falls. According to him, by doing SIP during downturn, investors get more units at lower prices, which gives good returns in the long run. He clearly said that waiting for the market to go down often proves to be harmful.
Vivek Law, Editor in Chief of Simple Hai, says that correction in the market is a part of the investment cycle. Short-term fluctuations can be troubling, but long-term investors should not try to catch the right moment. Investing continuously in a falling market brings benefits in the future. According to Arjun Guha Thakurta, executive director of Anand Rathi Wealth, the current decline is not very big. He advised that investors should not stop their existing SIP altogether. If possible, the SIP amount can be increased gradually. There may be movement in the market before the budget, but this can be a good opportunity for SIP investors.
Experts also say that investors who have money to invest together, should invest it in 3 to 4 parts instead of investing it all at once. This reduces the risk. According to Khushi Mistry, Research Analyst, Bonanza, this fall from higher levels is a normal and healthy correction. In such times, it is better to continue SIP and make small increases as per need rather than waiting for the market to bottom out. Overall, the advice from market experts is clear. Don't be afraid of the fall, continue SIP, invest regularly and stay in the market with a long term perspective.
