{"id":8264,"date":"2025-01-10T11:40:46","date_gmt":"2025-01-10T11:40:46","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=8264"},"modified":"2025-08-12T12:57:54","modified_gmt":"2025-08-12T12:57:54","slug":"should-stop-your-sip-when-market-not-performing","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/should-stop-your-sip-when-market-not-performing\/","title":{"rendered":"Should You Stop Your SIP When the Market Is Not Performing Well?"},"content":{"rendered":"\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><nav><ul><li class=\"\"><a href=\"#key-insight-from-the-study\">Key Insight from the Study:<\/a><\/li><li class=\"\"><a href=\"#successful-sip-the-smart-investors-choice\">Successful SIP: The Smart Investor\u2019s Choice!<\/a><\/li><li class=\"\"><a href=\"#data-insights-sip-returns-based-on-initial-performance\">Data Insights: SIP Returns Based on Initial Performance<\/a><\/li><li class=\"\"><a href=\"#why-continuing-si-ps-is-wise\">Why Continuing SIPs Is Wise:<\/a><ul><li class=\"\"><a href=\"#market-recovery-potential\">1. Market Recovery Potential:<\/a><\/li><li class=\"\"><a href=\"#rupee-cost-averaging\">2. Rupee Cost Averaging:<\/a><\/li><li class=\"\"><a href=\"#compounding-effect\">4. Compounding Effect:<\/a><\/li><li class=\"\"><a href=\"#avoid-emotional-investing\">4. Avoid Emotional Investing:<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#real-world-example\">Real-World Example:<\/a><\/li><li class=\"\"><a href=\"#conclusion\">Conclusion: <\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<p>Investors often grapple with the dilemma of whether to stop their <a href=\"https:\/\/navia.co.in\/blog\/which-one-to-choose-for-sip-mutual-funds-or-etf\/\">SIP (Systematic Investment Plan)<\/a> during market downturns. It\u2019s natural to feel concerned when returns seem discouraging. However, historical data suggests that staying invested during such periods can be beneficial.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-4a2a86e5259416d7466a2e6bdb86e161\" id=\"key-insight-from-the-study\" style=\"color:#023368\"><strong>Key Insight from the Study:<\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/navia.co.in\/blog\/large-cap-mid-small-cap-sip-long-term-investing\/\">SIP analysis <\/a>conducted on BSE Sensex TRI from August 1996 to May 2024 reveals a surprising trend: SIPs that experienced lower returns during the initial five years often yielded better returns over a ten-year horizon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-80927908d6f67ebbb7897f7a2bc7d20c\" id=\"successful-sip-the-smart-investors-choice\" style=\"color:#023368\">Successful SIP: The Smart Investor\u2019s Choice!<\/h2>\n\n\n\n<p>A successful SIP is more about&nbsp;<strong>\u201cStarting Early\u201d<\/strong>, maintaining the discipline of&nbsp;<strong>\u201cInvesting Regularly\u201d<\/strong>, investing for the&nbsp;<strong>\u201cLong Term\u201d<\/strong>&nbsp;to achieve our&nbsp;<strong>\u201cFinancial Goals\u201d<\/strong>&nbsp;and less about \u201cWhich Date\u201d, \u201cWhich Frequency\u201d, \u201cAt what stage of the Market Cycle\u201d etc.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/navia.co.in\/\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"270\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7-1024x270.png\" alt=\"SIP\" class=\"wp-image-8267\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7-1024x270.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7-300x79.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7-150x40.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7-768x203.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-7.png 1141w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-232c55419539d75e1de2b1eb10ee4350\" id=\"data-insights-sip-returns-based-on-initial-performance\" style=\"color:#023368\"><strong>Data Insights: SIP Returns Based on Initial Performance<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><td><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">First 5-Year SIP Return Range<\/mark><\/strong><\/td><td><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Average 10-Year Return (XIRR %)<\/mark><\/strong><\/td><\/tr><\/thead><tbody><tr><td>Less than or equal to 8%<\/td><td>18.7%<\/td><\/tr><tr><td>More than 8%<\/td><td>14.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-26122dea7cb26488666df3c81acd2a9a\" id=\"why-continuing-si-ps-is-wise\" style=\"color:#023368\"><strong>Why Continuing SIPs Is Wise:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d602be98599d508b23196f62187298d2\" id=\"market-recovery-potential\" style=\"color:#ec4d37\">1. <strong>Market Recovery Potential:<\/strong><\/h3>\n\n\n\n<p>Equity markets are inherently volatile. A slow start in<a href=\"https:\/\/navia.co.in\/blog\/sip-vs-lump-sum-choosing-the-right-investment-strategy-for-you\/\" data-type=\"post\" data-id=\"2353\"> SIP returns<\/a> often leads to better performance due to the market&#8217;s recovery over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d18470fa107739d4476f6fc3aed36dab\" id=\"rupee-cost-averaging\" style=\"color:#ec4d37\">2. <strong>Rupee Cost Averaging:<\/strong><\/h3>\n\n\n\n<p>When the market is down, your SIP buys more units at lower prices, reducing the average cost per unit and boosting long-term returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5fb4b82e44e1374a545533915d4ed254\" id=\"compounding-effect\" style=\"color:#ec4d37\">4. <strong>Compounding Effect:<\/strong><\/h3>\n\n\n\n<p>The longer your money stays invested, the more time it has to benefit from compounding. <a href=\"https:\/\/navia.co.in\/blog\/when-to-stop-sip-and-sell-your-investments\/\" data-type=\"post\" data-id=\"6970\">Stopping SIPs<\/a> disrupts this growth cycle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-0fe7b08ecfcba55d32131794193cb9ec\" id=\"avoid-emotional-investing\" style=\"color:#ec4d37\">4. <strong>Avoid Emotional Investing:<\/strong><\/h3>\n\n\n\n<p><a href=\"https:\/\/navia.co.in\/blog\/category\/investments\/\">Making investment <\/a>decisions based on market sentiment can be counterproductive. A disciplined approach works better.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/navia.co.in\/app.html\" style=\"background-color:#ec4d37\"><strong>Get Navia APP<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-7e350d74ce7c0e84794c115462cffb25\" id=\"real-world-example\" style=\"color:#023368\"><strong>Real-World Example:<\/strong><\/h2>\n\n\n\n<p>Consider two investors:<\/p>\n\n\n\n<p>1. <strong>Investor A:<\/strong> Stops SIP after five years due to low returns (~8%).<\/p>\n\n\n\n<p>2. <strong>Investor B:<\/strong> Continues SIP despite similar returns.<\/p>\n\n\n\n<p>By the 10th year, Investor B sees a significant performance boost, with returns averaging 18.7%, far surpassing Investor A&#8217;s returns.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php\"><img decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15-1024x149.png\" alt=\"Navia demat account\" class=\"wp-image-7790\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/12\/image-15.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-67327f7a9679c1706c94d773855a510c\" id=\"conclusion\" style=\"color:#023368\"><strong>Conclusion: <\/strong><\/h2>\n\n\n\n<p><strong>Stay the Course<\/strong> Stopping an SIP during market downturns could mean missing out on future gains. Historical data supports a disciplined, <a href=\"https:\/\/navia.co.in\/blog\/mastering-the-art-of-value-investing-strategies-for-successful-wealth-building\/\">long-term SIP strategy<\/a>, emphasizing that market volatility is temporary, but compounding returns can be lasting.<\/p>\n\n\n\n<p>Stay invested, stay disciplined, and trust the process.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-ad2f72ca wp-block-group-is-layout-flex\">\n<p>We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-1.png\" alt=\"\" class=\"wp-image-8271\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<p><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fnavia.co.in%2Fblog%2Fis-entry-more-important-or-exit-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/twitter.com\/intent\/tweet?text=Is%20Entry%20More%20Important%20or%20Exit%20in%20Trading%3F&amp;url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fis-entry-more-important-or-exit-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fis-entry-more-important-or-exit-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/api.whatsapp.com\/send?text=Is%20Entry%20More%20Important%20or%20Exit%20in%20Trading%3F%20https%3A%2F%2Fnavia.co.in%2Fblog%2Fis-entry-more-important-or-exit-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/telegram.me\/share\/url?url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fis-entry-more-important-or-exit-in-trading%2F&amp;text=Is%20Entry%20More%20Important%20or%20Exit%20in%20Trading%3F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors often grapple with the dilemma of whether to stop their SIP (Systematic Investment Plan) during market downturns. It\u2019s natural to feel concerned when returns seem discouraging. However, historical data suggests that staying invested during such periods can be beneficial. Key Insight from the Study: The SIP analysis conducted on BSE Sensex TRI from August [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[184,209],"tags":[7,21,22,53,117,32],"class_list":["post-8264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-strategies","category-mutual-funds","tag-indian-stock-markets","tag-investments","tag-investor","tag-marketperformance","tag-sip","tag-wealth-creation"],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Should-You-Stop-Your-SIP_11zon-2.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=8264"}],"version-history":[{"count":11,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8264\/revisions"}],"predecessor-version":[{"id":12437,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8264\/revisions\/12437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/8275"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=8264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=8264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}