SIP: The boons of the downtrend market

The investment market is a volatile zone, one
can’t really pinpoint when the market is going to soar up or fall down. Even
the slightest movement in the market affects the earnings of the investors and
therefore they are prone to discontinue their investments in a downtrend
market. It is lack of farsightedness and fear of losing money causes the
investors to draw out from the market which causes them in terms of lost
opportunities and missed earnings. Amidst all this chaos, it is the disciplined
SIP investors who emerge as winners in the downtrend market.

How downtrend of the market helps the
SIP investors?

Though the volatile nature of the equity
market is unpredictable and risky, it is worth the risk to continue the regular
habit of investing in SIPs. Let us take a look at how exactly the downtrend market
helps a SIP investor:

  • The most full proof way of tackling the tides of a downtrend market is
    to stay put in the situation. Regular and systematic investment ensures that
    the SIP investors make the most of the market in every situation and enjoy
    benefits in terms of earnings.
  • The downtrend market comes with an opportunity for the SIP investors to
    add more to their collection of units at minimum cost. The downtrend market allows
    them to purchase at a price lower than usual which ultimately increases their
    chances of earning more in a thriving market when they choose to sell the same
    units at a higher price.
  • It is true that equity market faces periods of lows but at the same time,
    the returns earned tend to follow a nominal growth rate of GDP over the
    long-term. This comes off as a benefit for those investors who have put their
    money in long-term SIPs.
  • Investors shouldn’t be too quick to judge the fruitfulness of an
    investment plan on the basis of its performance and returns in the immediate
    market. A plan that is struggling at the beginning of the down phase can show
    exemplary performance in the next 3-5 years and earn returns more than many
    other schemes.
  • SIP investors understand the importance of years when it comes to wealth
    creation through compounding effect.  The
    disciplined habit of investing regularly, irrespective of the phase of the
    market, allows them to enjoy a steady flow of earnings and helps in generating
  • The equity market doesn’t always lay low; a systematic investment habit
    offers the investors with exciting investment opportunities to meet their
    financial goals successfully even at times when the market is struggling.
    Moreover, it also helps the investors to strengthen their corpus for a better

Investing in a SIP and continuing that investment even
in downtrend market enables a person to meet their financial goals and to plan
their life afterretirement better.

Seek the assistance
of financial experts to learn in depth about the investment tricks which will
help you brave the downtrend of the market confidently.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 167127

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