Which one to choose? High NAV or Cheap NAV

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What Is NAV and Why Does It Matter? Whenever you check the performance of a mutual fund or SIP, you’ve probably seen the term NAV .  But  ✍what exactly does it mean, and  ✍why do investors talk about it so much?  Understanding NAV is essential for making smart investment decisions—especially if you want to grow wealth confidently and avoid common beginner mistakes. You may also know๐Ÿ‘‡ ✍What Is NAV? NAV (Net Asset Value) is the per-unit value of a mutual fund or in other word say it is the price of one unit of a fund on any given day. When you invest in SIP/Mutul fund, you will get fixed numbers  of units(Decided by  NAV price of that day) ✍How NAV calculated? It is calculated using a simple formula: NAV = (Total Assets – Total Liabilities) ÷ Number of Units  Every business day, after the market closes, AMCs calculate and publish updated NAVs for each scheme. ✍Does a Higher or Lower NAV Mean Better Returns? One of the biggest misconceptions among n...
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Top Benefits of SIP Investment during falling market

 



Why You Should Continue SIP During a Falling Market

When markets fall, panic often sets in. Many investors feel tempted to pause or stop their Systematic Investment Plans (SIPs). But is that really the smart move? In fact, continuing your SIP during a falling market may be one of the best investment decisions you can make for long-term wealth creation.

Let’s explore why you should continue your SIPs even when markets are down.

1. Rupee Cost Averaging Works in Your Favor

One of the key benefits of SIP is rupee cost averaging. When the market falls, you buy more mutual fund units for the same investment amount. Over time, this lowers your average cost per unit. When the market recovers, you stand to gain more due to the lower average purchase price.

Example:

  • Month 1: NAV ₹50, SIP ₹5,000 → 100 units
  • Month 2: NAV ₹40, SIP ₹5,000 → 125 units
  • Month 3: NAV ₹35, SIP ₹5,000 → 142.85 units

In just 3 months, you've accumulated 367.85 units instead of fewer units had the NAV remained high.

๐Ÿ‘‡

2. Downturns Are Temporary, Growth Is Long-Term

Markets go through cycles — ups and downs are natural. However, historically, markets have always recovered and gone on to hit new highs. If you stop your SIP during downturns, you miss out on accumulating units at discounted prices.

Continuing your SIP ensures you stay invested for the recovery.

3. Discipline and Consistency Are the Keys to Wealth Creation

SIP is all about financial discipline. It’s a commitment to your long-term goals — be it retirement, child’s education, or buying a home. Interrupting your SIP due to market volatility breaks that discipline and delays your financial journey.

Successful investors focus on consistency, not timing the market.

4. Falling Markets Are the Best Time to Buy

Everyone loves a sale — and a falling market is a sale on mutual fund units. Instead of fearing a downturn, savvy investors take advantage of low prices to accumulate more units.

Continuing SIP during a market fall means you’re buying more at lower prices.

5. Emotional Investing Leads to Poor Results

Markets are driven by emotions — fear and greed. Many investors stop SIPs during market falls out of fear. But reacting emotionally often leads to poor investment decisions.

By starting investment with right financial advisor/distributor you will stay invested through your SIPs  as distributor convice you in this panic situstion and remove  your emotion from the equation thats why you will stick to a plan based on logic and long-term strategy. 

Start financial journy with Exprt advice freely


๐Ÿ‘‡“Free SIP guide for beginners”

6. Compounding Needs Time — Don’t Disrupt It

Wealth is not created overnight. SIPs thrive on the power of compounding, which needs time and consistency. Market corrections may seem scary now, but in 10–15 years, they will appear as minor dips in a long upward journey.

Final Thoughts: Stay the Course

It’s natural to feel anxious during a falling market. But remember — SIPs are designed to help you ride out market volatility and come out stronger. By continuing your SIP during downturns, you’re not just investing money — you’re investing with strategy, patience, and vision.

Stay invested. Stay consistent. Stay ahead.

๐Ÿ‘‰Recommended

 What is SIP(For beginners)

 How & where to start

What is Goal Based SIP


๐Ÿ‘‰Best App to start with expert support.


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