SIPs in Market Crashes: How Consistent Investing Builds Wealth
Personal Finance
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CNBC TV18•23-01-2026, 17:10
SIPs in Market Crashes: How Consistent Investing Builds Wealth
- •SIPs involve regular, fixed investments, allowing investors to benefit from market growth over time.
- •Mutual funds are affected by market crashes, with NAVs falling as underlying security prices drop.
- •Market downturns lead to increased redemption requests, forcing fund managers to sell assets at lower prices.
- •SIPs leverage market declines: the same investment buys more units when prices are low, accumulating more units for future recovery.
- •Discipline, patience, and a long-term perspective are crucial for SIP investors to maximize benefits during market volatility.
Why It Matters: SIPs turn market volatility into an advantage by buying more units at lower prices during downturns.
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