Stopping a SIP: When Does it Make Sense?
Business
M
Moneycontrol•20-01-2026, 19:01
Stopping a SIP: When Does it Make Sense?
- •Many SIPs are stopped prematurely due to life changes, market volatility, or neglect, contrary to the 'set it and forget it' ideal.
- •Common reasons for stopping include cash flow stress (job loss, medical expenses) and market downturns, where fear often overrides long-term strategy.
- •Valid reasons to stop a SIP include unstable income, inadequate emergency funds, changed financial goals, or consistent underperformance of the fund.
- •Stopping a SIP purely due to falling markets or slow returns is often detrimental, as it locks in losses and misses opportunities.
- •Consider pausing a SIP during temporary financial stress instead of a permanent stop, to maintain investment discipline.
Why It Matters: Stopping a SIP is not a failure if done for sensible reasons like changed circumstances, not just emotions.
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