Answer Book question

Should I stop my SIP when the market falls?

No. if the fund is right and the money is long-term. A fall is when each instalment buys more units. Stopping at the bottom is the most common way people turn a paper loss into a real one. The only good reasons to stop are a change in your own situation, not in the market.

By Kerala Rising · ·

Short answer

No. if the fund is right and the money is long-term. A fall is when each instalment buys more units. Stopping at the bottom is the most common way people turn a paper loss into a real one. The only good reasons to stop are a change in your own situation, not in the market.

Real life

In a sharp market fall, a man in Kochi pauses his ₹15,000 SIP "until things settle." The market recovers over the following year. He restarts at higher prices having missed the cheapest instalments of the decade.

What this means

Rupee-cost averaging works because of falls. Continuing through them is the entire point.

What to check

Has anything changed about your income, goals or reserve? Is the fund itself still appropriate? Can you afford the instalment without touching the reserve?

What people often miss

Confusing a market fall with a personal emergency. The former is a reason to continue; only the latter is a reason to pause.

The Kerala / NRI angle

Market fear spreads fast in WhatsApp groups. Decide your rule in a calm month and follow it in the loud one.

An example

SIP ₹10,000. NAV ₹100 → 100 units. Market falls; NAV ₹70 → 143 units for the same money. Recovery to ₹100 makes those 143 units worth ₹14,300.

When this may not be the right answer

If you lost your job, pause the SIP and protect the reserve. That is a personal reason and it is valid.

What to do next

Write your rule: "I continue SIPs through falls unless my income changes" Keep a reserve so you never have to break it

Related questions

Does SIP guarantee profit? My mutual fund is down 15%. What should I actually look at?

Related Kerala Rising help

Kerala Rising Money

Sources and what to verify

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Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.