Why investors should continue investing in SIPs even in a bear market

SIPs make sense only if invested over the long run. Returns on a short-term SIP are insignificant or volatile

The recent fall in the equity markets has seen some investors getting negative returns on the SIPs that have been initiated over the past one year or so. This raises the question as to whether SIP should be discontinued during bear phases of the markets.

Let us recapitulate what an SIP is and its benefits.

A systematic investment plan (SIP) is a disciplined way of investing in mutual fund schemes, in which an investor can make equal payments at regular intervals (normally monthly) over an extended period to accumulate wealth over the long run. It inculcates the habit/discipline