Steep market corrections like the one triggered by the COVID pandemic during the months of March and April this year lead many investors to stop their SIPs fearing further market dips and losses. However, steep market corrections and bearish market phases present an excellent long term wealth creation opportunity. It allows fund managers to buy quality equities at extremely attractive valuations. Hence, equity fund investors should not only continue with their SIPs during such market phases to average their investment cost, they should also try to top up their SIPs with lump sum investments in a staggered manner to further average their investment cost. Doing so would enable them to create much bigger corpuses with much lower contribution before the completion of the time horizon of their financial goal.
Find out how the 'Chicken Sexing' anecdote from Japan is related to investments, and develop a robust mutual fund investment strategy for yourself.