When the markets are volatile, many investors start doubting their investment decision and start thinking of closing their SIPs or withdrawing their investment money. It's natural to be concerned when you see your investments in a volatile market in the red. But it would be wise to continue with your SIPs especially during market volatility as you will be able to buy more units with the same amount of monthly investment. We all like to shop for bargains whether it is an online sale or a vegetable shop. Isn't it? So why not do the same in our mutual fund investments when prices are falling?
The market is more uncertain than even our weather forecasting apps. When the market goes down, you can never invest your lump sum in the right way at the right time. What if the market drops further after you invest? Similarly, when the market is bullish, you can never sell yourself at the right time because after you sell, the market may move more quickly. If you try to get hold of the market, you will be disappointed, and your returns may get affected due to wrong steps. So keeping your goals in mind, it is better to invest regularly through SIP in the ups and downs of the market. You do not have to worry about market volatility as the average cost of your investment will be correct over time.