Worried About The Bearish Market? Here's What to Do
6. Stick to Your SIPs
Stock prices vary more due to market conditions, rather than business fundamentals at times. If you choose to invest through SIPs, it eliminates the guessing part and provides you the option to purchase more units when the market dips.
While many investors who entered the equity market at peak in early 2008 have hardly made any money, the SIP investors earned handsome returns. The Quantum Long Term Equity fund has been the best performing large- and mid-cap equity fund in the past five years.
Though SIPs have performed well over the years, statistics show that investors tend to lose faith very soon during market volatility. If you decide to stop your SIP when the market is unstable, it will probably be one of your worst investment decisions. It defeats the very purpose of systematic investing and rupee cost averaging. If you invest when the market is subdued, your SIP will buy more units because the prices are low.
