In God we pray, data we say

Recently, I read about the discontinuation of 109 per cent of SIP (systematic investment plan) accounts in January 2025. This is higher than the previous high of 52 per cent in April 2024, as per a JM Financial report. The innocuous SIPs have become the highlight of heated debates. This high percentage could be due to nervousness and fear that may have gripped investors since almost three-fourths of them are new to the investing world and haven't seen extended periods of correction. There are multiple factors at play at any point in time. Such situations are anything but simple to decipher, and uncertainty prevails on all such occasions. Post facto reasons are overanalysed, and a few investors leave the journey forever with a bitter experience. The one true statement that needs to be remembered is that no one knows when the fall will get arrested or when FIIs will reinvest in Indian equities. What has been the damage so far? The numbers will be very different by the time this article gets published. Today's rough calculation shows a fall of around 15, 24 and 32 per cent in large-, mid- and small-cap indices, respectively, f

This article was originally published on March 17, 2025.