Avoid severe portfolio moves as markets scale new highs, suggest experts

Going 100% into equity SIPs, or getting wholly into debt, will hurt in the long run, say experts

July saw two record high numbers for systematic investment plans (SIPs). On the one hand, the highest-ever number of new SIP accounts — 2.38 million — were started. At the same time, the number of discontinued SIPs also touched a high of 855,000 for the financial year.

Experts attribute two reasons for so many SIPs being discontinued.

Says Jharna Agarwal, head, Anand Rathi Preferred: “Experienced investors are synchronising their asset allocation with market conditions. Inexperienced investors, on the other hand, are worried that the market is at very high levels and are cutting short their SIP tenures.”

Note that the