With market at an all-time high, we been getting queries in all possible formats from our customers, on what do I do with my SIP (systematic investment plans) in Mutual Funds?
My suggestion; find your own reason on what you want to do with your SIP. But strictly, do-not get swayed by the market jump or the recent surge, or even a dip in the future(which can also happen). As per studies conducted on the human behaviour, most of the time we react or make panic decisions based on the external factors,and miss out on the larger picture, or the long-term benefits.
My understanding on all SIP’s is that, they are started with some purpose(goal) in mind, therefore one should follow the simple rule of Start-and-Forget for your SIP… i.e. irrespective of the market movement, High-or-Low, you are not to be bothered, till the time the purpose (goal) date is approached 😉
Even though market is all time high now, but looking at the internal & external factors governing our economy, India is poised towards a great growth, not just for now (2018), but for many years to come, at least 10 to 15 years from now. India is the next China.
INCREASE SIP: if your cash-flow is permitting you to commit more per month, definitely it’s The Best Idea. Do not wait further, and right away take the decision to either top-up (increase) your existing SIP, or choose the next best fund to start another SIP.
SWITCH SIP; based on your study (and I mean proper study)or after consulting a qualified advisor, ONLY, one can look at a switch, i.e. to close the existing SIP and start with a new SIP fund(same or higher amount). Overall, just by looking at newspaper/ TV info & ads, one should strictly avoid such decisions/ switch.
STOP SIP; strictly a big NO. As suggested earlier, you are starting an SIP for a purpose (goal) & not to time the stock market, therefore one should not look at stopping SIP. Even if you want to stop, ask this simple question, where would you invest that money now?
Therefore, STAY PUT & JUST INCREASE!!!
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