I have an SIP in a mid-cap fund, the tenure of which will mature in three to four months. Should I renew my SIP after that or should I stop?
- Kaustubh Shamshery
No, you should not stop your SIP in the mid-cap fund. In fact, you should feel happy about it. SIP is not a deposit with maturity. If you don't need the money, you can continue with it because you should invest in mid caps for long-term goals. So if you are comfortable with the interim declines that you saw, say in March 2020 or sometime in between, you must carry on.
Ideally, if you are still investing for five years and more and are a little worried about your investments, simply because it has gone up, then there's not much to worry about, and you may continue with them. However, if it is for a period shorter than that, then maybe move to more conservative vehicles like balanced advantage funds or aggressive hybrid funds.
This article was originally published on October 12, 2021.
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