Stock markets hit apurple patch in 2014, when domestic and global factors led to rise in stockmarkets and with increasing awareness towards financial investments, flows inMutual funds and Systematic Investment Plans (SIPs) started increasingexponentially.
However, when things go bad, humans have atendency to panic! Panic and fear prevent us from thinking rationally. We canmake bad investment decisions.
Investors were veryhappy initially with their SIP as markets were in uptrend but when marketsstarted becoming volatile and started correcting, the returns of SIPs startedfalling from high double digits to low single digits.
In 2019, when the markets were volatile, ~5lakh SIPs were closed. However, this was the optimal time to invest andaccumulate units at a cheaper price.
One’s patience and perseverance will betested during market downturns. Investors should look to continue their SIPinvestments so that they automatically add when markets are volatile.
Here’s a video that encapsulates this thought in a quirky way by way of alove story between Ms. SIP and Mr. Downmarket. Watch the video with your lovedones and together learn the importance of staying committed to your SIPinvestments during the downturns.