Should I continue my mutual fund SIPs even if the returns are negative

I have been investing in SIPs for the last one and half years i.e. monthly 10,000.00 in each of the following: 1. ABSL Equity Advantage Fund - Growth-Regular Plan, 2. DSP Equity Opportunities Fund - Regular-Growth, 3. Reliance Large Cap Fund - Growth Plan, 4. TATA Value Fund Series 1 - Regular Plan Growth + (Lump Sum). The returns are showing negative and should I continue investing further or switch to other schemes. Looking forward to hear from you?

Jan 3, 2019 by Jaikumar Kaimal,   |   Mutual Fund

You are investing in good performing funds through monthly SIPs. Please note that these are equity mutual funds and your investment time horizon should be minimum 5 years or even more. In the last 15-18 months, the markets have been volatile and thus you see dip in your investment value/ or negative returns. Please note that these are very common when markets are not doing well. Therefore, you need to be very patient and stay invested in these funds. Please also note that since the markets are volatile/ down you are accumulating units at lower levels. These should give you good yield when the markets turn positive.

Therefore, our suggestion is that you should continue with your SIP investments and stay invested during this volatile period. Please read this for more clarity -

We are not commenting on your investment in TATA Value Fund as it is a close ended fund.

Wishing you the best.

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