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FD beats Nifty returns: Experts warn investors against stopping SIPs
N
News18•05-10-2026, 22:50
FD beats Nifty returns: Experts warn investors against stopping SIPs
- •Stagnation and high volatility in the stock market over the past two years have severely tested retail investors.
- •Experts note that comparing fixed deposits directly with equity mutual funds is inappropriate due to differing risk and return profiles.
- •Evaluating the entire mutual fund industry solely through benchmark indices like Nifty or Sensex does not paint the complete picture.
- •Financial experts advise investors not to panic and stop their SIPs during market downturns, as market corrections actually help acquire more units for better long-term compounding.
Key Questions Answered
Over the past one and a half to two years, stock market stagnation and high volatility have tested retail investors' patience, causing Nifty's returns to pale in comparison to the 6.5 to 7 percent offered by bank fixed deposits.
Evaluating the entire mutual fund industry solely through benchmark indices like Nifty or Sensex is incorrect. While large-cap indices have faced pressure, many flexi-cap, mid-cap, and small-cap funds have generated decent profits.
Stopping ongoing SIPs during market downturns can be a major mistake because SIPs are structured to benefit from market drops. Falling markets allow fixed monthly investments to buy more units, which greatly boost portfolio returns during recovery.
