Mutual Fund: It be a big advantage to continue SIP in a falling market Know full details
Mutual fund market experts believe that through SIP, investors should always keep investing a certain amount gradually from a long-term perspective. This gives them the advantage of all the ups and downs in the market.
Abhilasha 
For new investors, whenever it comes to investing in the stock market, we recommend that they start their investment journey through SIP. SIP is such a financial instrument, with the help of which one can easily accumulate a large corpus over a long period of time.
During market downturn, it is seen that many investors stop their SIP and think that as soon as the market starts rising again, then they will invest this amount again. In such a situation, they leave a huge opportunity to invest in the downtrend.
Investment discipline required
The behavior of any investor in investing is as important as choosing the right stocks and mutual funds on his behalf. Whenever the market is bullish, every investor feels that everything is going according to him and he should stay invested. But the same discipline is required in a falling market and it helps in increasing our returns.
Benefits of continuing with SIP
Now let us understand it through an example. If you had done a continuous monthly SIP of Rs 5000 in UTI Nifty Index Fund from January 2019 to August 2022, you would have invested Rs 2.20 lakh by now and this amount would have increased to Rs 3.04. In this way you would have got a return of 18.25 percent.
At the same time, if you had closed the SIP from April 2020 to September 2020 during the downfall of the market, then you would have invested Rs 1.90 thousand till now and this amount would have increased to Rs 2.51 lakh. During this you would have got a return of 15.98 percent.
If you had stopped your SIP from April 2020 to March 2021, then you would have invested a total of Rs 1.60 lakh during this period and your amount would have become Rs 2.11 lakh. In this you would have got a return of 15.66%. This calculation assumes that the investment gives SIP on the 10th of every month. In this, he has seen that the investor who continues the SIP has got more profit than other investors.
