The volatility in the mutual funds industry is a well-known subject. But, stopping SIP investments while the mutual funds market is down can put an adverse effect on your portfolio. Recently, a study done by Mirae Asset Mutual Fund shows if an investor stops investing in monthly SIPs during market breakdown, an individual can lose up to 19 lakh if they close their 15 year long of 10,000 per month for nearly 39 months.
The analysis also shows that the investor can make Rs.61.33 lakh in a large cap fund by continuing his SIP of Rs.10,000 for 15 years. In other words, the pause takes place for 39 months, starting from April 08 and May 09 due to global financial crisis,and September 15-June 16 due to world wide slowdown during Yuan devaluation and banks NPA fear, and February 20-Oct Covid 19 outbreak, and March 22 to August 22 due to Covid 19 and Ukraine Russia crisis, can result in his investment value become Rs.42.72 lakh as on March 2023. Thus, the ultimate loss in the investment portfolio is nearly Rs.19 lakh according to the analysis.
So, it’s important to invest in your portfolio regularly, through ups and downs of the market sticking to your ultimate goals. Worrying about market volatility can hamper your marketing goals and the cost of your investments will average out over a period.
