Stock market has continued to fall for four consecutive months. The Bombay Stock Exchange (BSE) has come down by 10 thousand points from its highest level. In such a situation, the portfolio of investors who had invested in mutual funds have now come on the red mark. After the continuous decline, now investors have a question whether they should continue SIP or hold it? We will give you the correct answer to this question below.
Stop or keep investing on?
Whenever there is a decline in the stock market, investors often withdraw from mutual funds. As long as retail investors have profit, they like them quite good, but they do not like losses in the selling market. In such a situation, he stops investing and waiting for the market to rise. However, it is absolutely wrong to do so. According to finance experts, SIP of mutual funds is for long term. Never stop the investment in the middle to get profits in a long period. This decision later turns into deficit.
Let me tell you that one should never panic at the time of any investment. Be it deficit or profit, one should always work patiently. Apart from this, the withdrawal from funds should be done in the completion of the target or in the state.
How is a deficit deal with evacuation?
The year 2020 is the best example of this. The country has suffered heavy losses due to Corona epidemic. That year the stock market declined by about 40 percent. After this huge decline, many investors felt that everything was over, while it did not happen. Many investors stopped investment due to falling market. However, many investors maintained patience and released investment. Now investors who had withdrawn from mutual funds in deficit. At the same time, those who kept patience made profit.
What to do in a red portfolio?
What should investors do in falling market and red portfolio? Regarding this, market experts say that when the market falls, there is a chance to increase investment. SIP can be started in the falling market. In such a situation, investors get more units and when the market increases, the investor makes profit.
For example, if you invest a monthly month of Rs 1000, then there will be more units in the falling market. In the falling market, the value of the unit falls and the investor gets more units. At the same time, the unit becomes expensive in the fast market and in such a situation, there will be less unit on investment of Rs 1000. Investing in the falling market in this way is quite good.
Disclaimer: This information is only for information purposes and should not be understood as investment advice. It is recommended to consult a financial advisor before making investment decisions.