SIP: The Corona crisis has also spoiled the mathematics of people’s savings and investment. Investors, both in the equity market or in mutual funds, suffered significant losses, due to which some people sold or stopped their investments. These include mutual fund SIP. According to data from the Association of Mutual Funds in India (Amfi), there are a total of 40.5 lakh people who have closed their SIPs from April to August this financial year. This is about 7 lakh more than last year. You may also join them. If you did this due to some problem then what should we do now…
Case 1: Closed due to decrease in income
During the Corona Crisis, the income of many people was reduced or stopped. In private companies, where people had to face a salary cut, non-salaried income was reduced due to closure of the business. In such a situation, he had to stop his SIP investment in the stronghold.
What to do: If their income is back on track, then they continue to SIP as before. You can also opt for SIP top-up. They will get a chance to increase the unit due to the valuation being cheaper.
Case 2: Closed in panic, but did not withdraw money
There are many people who stopped investing due to fear of seeing the market falling in the Corona crisis. But they did well that money is not black.
What to do: There are 2 things for them as well. First, they can issue SIPs now, as the market condition is improving. Second, they can switch some money into debt segment. Later, when Jag Bazaar is fully back on track, they can again look at debt to equity.
Case 3: Closed too, withdrawn money
There will be many people who must have been locked in a panic, while they may have withdrawn money by mistake.
What to do: It is better for them to review their portfolios anew. Since their behaviour it seems that they have less ability to take the risk. Because of this, they renew SIP keeping in mind the asset Alokeyan strategy. Lack of funds may be the reason for withdrawing the second money. In such a situation, they should definitely create an emergency fund.
What to say about the expert
There can be several reasons for stopping AKSIP, the director of BPN Fincap. But if it is done in a panic then it is not a correct strategy. Up to 60 percent has been approved by the market. The equity mutual fund segment has also benefited. For now, if you are in a condition to invest again, then you should start your ability to take risk, by rediscovering your goals. The market has improved, the economy is coming back on track. In this case, cheaper units can be taken advantage of.