When To Stop Investing in SIPs
SIP Calculator: When to stop investing in SIP How much is involved in the impact of the stock market?
Highlights
- SIP has emerged as a popular option
- Investment in SIP can be stopped for some time
- Stopping SIP is not a very wise decision
Nowadays SIP has emerged as a popular option for investing in mutual fund schemes. This is because the investors get a hefty return as expected in this case. In such a situation, the number of investors in SIP is also continuously increasing. If you are also investing in mutual fund SIP, it is very important that you have the right information about it. Because if there is no proper information, you may face loss instead of profit.
One thing to note is that the money you invest in mutual fund SIP is invested only in the stock market. Therefore, the ups and downs of the market have a direct impact on its returns. Many people think that it is better to close SIP when the market is very volatile. Now let’s know what is the right time to stop SIP?
If you invest or want to invest in SIP, there are a few things you must be aware of. Many people don’t know that investing in SIP can be stopped for a period of time. But many investors are not aware of this. But many investors sometimes stop investing in SIPs during economic crisis or to overcome market challenges, which can be reinvested later.
More Profit When The Market Goes Down
When the market is going down, it is not a very wise decision to close the SIP. Because when the market rebounds after a dip, investors benefit more by continuing to invest. This is why you can buy more units during a fall and get more profit when the market recovers. Through this investors can get good profit in long term.
When Can Investments Be Stopped?
If you are short of money for some time, you can invest in SIP for a few months. By closing SIP, you will be able to know your finances and you will have enough time for further planning. After some time, when money starts coming to you, you can start again. This does not affect your return.
