Is it advisable to continue with your SIP when the market is in a bull run?
- D. Narayan
It is advisable to continue your SIP even when the market is in a bull run because you don't know when the bull run will start running higher. So, continue investing.
Think of a situation like from 2003 to 2007 when the markets went up from 2800 to 3000 to 4000 to 5000 to 6000. So, by that time, it was established that it's a bull run. But then it went up relentlessly to 20000. So, if you run away, you will miss out on that opportunity. So, one should continue investing.
Further, I think you don't have any control over market phases, but you do have an absolute control over how you conduct yourself. Trust yourself more and be disciplined about it.
Maybe what you're scared of is that as the bull run has taken the values up, when the market crashes, your investments will go down. The way, however, to deal with it is to work on your asset allocation and rebalance it periodically. So, you'll be able to book a part of your profits in a bull run and invest more in equity during a bear phase. Being disciplined with all this is the key. Do not end up doing it too often. Just be conscious of the exit load and tax implications.