Why continue investing through SIPs in a volatile market?

When the markets turn volatile many investors start doubting their investment decisions and think of stopping their SIPs or withdrawing their investments. It’s natural to get worried when you see your investments in red during a volatile market. But it would be wise to stay put with your SIPs especially during a falling market because with the same amount of monthly investments you will end up buying more units. We all love to bargain shopping be it during an online sale or simply at the sabzi shop. Isn’t it? Then why not for our Mutual Fund investments when prices are falling?

The market is more unpredictable than even our weather forecast apps. You can never time yourself perfectly to invest a lumpsum amount when the market falls. What if the market falls further after you’ve invested? Similarly, you cannot time yourself perfectly to sell at a market high because the market may go up further after you’ve sold. If you try to catch the market, you will be grossly disappointed, and your returns can be affected due to wrong timing. Hence it is better to invest regularly through highs and lows of the market by investing through a SIP with a clear focus on your goals. You need not worry about market volatility since the cost of your investments will average out over a period.