When it comes to investing, especially through Systematic Investment Plans (SIPs) in mutual funds, many investors expect quick results. But the reality is, SIPs are not designed for instant gratification; they are long-term wealth-building tools. A slow start often feels discouraging, especially when the market corrects or returns look modest in the first few years. However, this slow start can actually be a blessing in disguise. Let’s explore why patience pays and how to evaluate SIPs during different phases of your investment journey. Evaluating SIPs During Market Corrections – Continue or Pause? Market corrections can be unsettling. When equity markets fall, SIP investments often show negative or flat returns, leading investors to question whether they should pause their contributions. The golden rule is: don’t stop your SIP during corrections . In fact, these are the times when SIPs work best. By continuing, you buy more units at lower NAVs, which reduces your overall cos...
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