Many investors react very shockingly if they witness a slight change of a mere 0.82% in their SIPs growth. There is nothing to be so alarmed about. Such a slowdown will not put your investments into risk and force you to opt for a debt like a personal loan or home loan etc to finance your requirements.
For investors, it is very important to understand the working of SIPs. It is a disciplined and a regular investments plan that guarantees to grow your investments, when invested in the right type of funds, to good heights. However, you should prevent yourself from reacting to the markets’ ups and downs. Any method of regularly investing in a good equity fund will work, a SIP just makes it a habit.
The investors, generally on a daily basis, face the following two problems, one of over-reading and over-interpreting numerical analysis; and the other of appreciating the ways in which the past is a good guide to the future and the ways in which it isn’t.
It is always important to anticipate the future working of a specific fund and not how it has reacted to the markets to the previous couple of quarters. It would not make any sense. Only if your particular fund seem to have performed badly in the last 2-3 years, there is a strong reason for you to change your fund. Otherwise to remain intact is what is advised. Do not get carried away or get let down by numbers, investing in the right fund and having patience is he key to earning higher returns