Should You Stop Your SIPs Due to Market Losses? Here’s What Experts Say

Many investors who started Systematic Investment Plans (SIPs) in mutual funds since 2020 are seeing losses due to recent market drops. This has led some to consider stopping their SIPs and moving to safer investment options.

What Should SIP Investors Do?

✔ Review & Rebalance – Check if your investments match your risk level and diversify if needed.
✔ Increase SIPs in Market Lows – If you can, invest more during downturns to benefit later.
✔ Stay Invested for the Long Term – Markets go up and down, but they always recover over time.
✔ Consider a Hybrid Approach – A mix of equity, debt, and fixed-income investments can provide both stability and growth.

Why Are SIPs in Loss?

The stock market has been fluctuating over the past year, affecting mutual fund returns. Investors who began SIPs after the pandemic rally may now see little or no growth. However, experts advise against stopping SIPs during a downturn.

“SIPs work by averaging out investment costs over time. If you stop now, you might miss the chance to buy at lower prices and benefit from future market recovery,” says a financial advisor.

Should You Switch to Safer Investments?

Safe options like Fixed Deposits (FDs), Public Provident Fund (PPF), and government bonds provide stable returns but may not beat inflation in the long run. While they protect your capital, they usually offer lower returns than stocks over time.

Financial planners suggest a balanced approach instead of shifting completely to risk-free investments. Consider your risk tolerance, financial goals, and time horizon before making a decision.

Experts say that unless your financial situation has changed drastically, stopping SIPs is not the best move. Staying disciplined and regularly reviewing your portfolio can help you manage market ups and downs.

Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making any investment decisions.