InvestorQ : How should individual investors handle rise in SIP closure ratio?
Aditi Sharma made post

How should individual investors handle rise in SIP closure ratio?

Answer
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Aashna Tripathi answered.
5 months ago


It is easy to panic and a lot more difficult to keep a cool head. This is the time to keep a cool head and take measured decisions, it is now. There is enough empirical evidence to show that a SIP that is continued with discipline through the market vagaries comes out smarter and even stronger. Also, your long term goals like retirement and daughter’s college would still remain in the future. Don’t look at your long term SIPs as a liquidity raising tool. That would imperil your own financial future. You can choose between budgeting and temporary hold on SIPs till liquidity improves. Rising SIP closure ratio is just a sign of panic. You must still take a calibrated view! If you can avoid terminating the SIP, you would be better off.