For investors who started investing after the pandemic, this is the first real market correction. Markets are cyclical, and given the way our markets went up from late 2020, this fall was inevitable. I don’t know how good the data is, but it seems like the number of investors stopping their SIPs has gone up. This is the wrong thing to do. What an SIP helps you do is to average your investments across different market cycles.

You averaged on your way up from 2021; now, you get to average on the way down. In 2020, large, mid, and small caps fell by 25-40% but then rose by 200-400%. If you had panicked, you would have missed the rebound. As long as you invest regularly in the right funds, diversify, and stay disciplined, your chances of long-term success are high.

The other mistake to avoid is leverage. There’s no shortage of businesses triggering you to borrow money to invest etc., but that’s a bad idea. I’ve no idea where the markets go from here, and neither does anyone. What I do know is panicking now is the wrong thing to do, and you can get pushed to panic if you have borrowed.

You are better off just investing every month and doing something useful in life than getting carried away by the doom and gloom. If you are new to the markets and are feeling nervous, watching this Zero1 by Zerodha video.

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