JANUARY 16, 2024

6 benefits of SIPs in a volatile market

A systematic investment plan (SIP) of a mutual fund offers a steady and disciplined way to invest in the markets. Here are 6 benefits of SIPs during market volatility.

Overview

SIP investors stay unaffected by daily market fluctuations, unlike day traders who have to monitor every rise and fall in the market. 

Less volatile

Mutual fund SIPs are managed by professionals who handpick stocks and build portfolios, saving you the hassle of market analysis.

Professionally managed

SIPs help build patience and discipline to stay invested during volatile times, which are keys to creating wealth in the long term.

Builds discipline

SIPs allow investors to acquire more mutual fund units when the market is down, effectively lowering the average cost per unit.

Rupee cost-averaging

Unlike lumpsum investment, you invest only a small amount in SIP at once. So if there is a sudden market crash, your losses are limited. 

Limited downside

SIPs eliminate the pressure of predicting market movements, ensuring steady investments during volatile phases.

Steady investing

This content is for informational purposes only and must not be considered investment advice from Upstox. Consult a financial advisor before starting SIP.

Disclaimer

ULIP vs Mutual Fund: Know the difference

Thanks for reading!

See next

Read Now