*How do SIPs works during market volatility and Rupee Cost Averaging benefit*
If you are wondering when to stop your SIP investments, then let us tell you that it is never a good time to discontinue them.
Discontinuing your SIP investments during a market downturn 📉 is perhaps the worst mistake you can make as an investor.
*It defeats the very purpose of SIPs by negating the opportunity to accumulate more units when prices go down*.
🎯 A downturn is the ideal time for SIPs to actually work in your favour.
🎯 SIP investments tend to work better in a fluctuating market scenario.
🎯 As the market hits lows, resulting in a decline in a fund’s NAV (Net Asset Value), you end up buying more units of the fund at a lower price.
Gradually, as the market starts picking📈, the value of your SIP investments could fetch more returns since you own more units now.
*This miracle is called Rupee Cost Averaging, also referred to as the eighth wonder of the world by some*.
So, if you were to stop your SIPs during this period, you would not be able to seize this wonderful opportunity. Best Opportunity to increase your portfolio📊.
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