SIP stoppage hits 109%; here's why I am continuing my SIPs

As the market continues to stay in the red, it is no surprise that investors are panicking and selling off or halting their investments altogether. The SIP stoppage ratio, which measures the number of discontinued SIP (systematic investment plan) accounts versus new registrations, hit a staggering 109 per cent in January, the highest for some time. Like many investors, I, too, was tempted to pull the plug on my SIPs. After all, who likes to see their hard-earned money lose value? However, I quickly realised that mixing emotions with investing will only do more harm than good for my wealth. And thus, I decided to keep going, and so should you. Why halting your SIPs during downturns is a bad idea #1 Corrections are part and parcel of the equity market Markets fluctuate, but they've always bounced back in the long run. Selling during a downturn locks in losses, while staying invested allows you to ride the recovery wave. Here's why. Over a five-year period, SIP investors in Sensex experienced returns ranging from a high of 78.6 per cent to as low as -14.5 per cent. But if this timeline is extended to 20 years, the range narrows significantly - from a high of 20.8 per cent to a low of 9.2 per cent. Why does this happen? This is because market highs and lows even out over time. Thus, the longe

This article was originally published on February 20, 2025.