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Are mutual funds really right? Know if you should continue or stop your SIPs
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News18•05-10-2026, 19:56
Are mutual funds really right? Know if you should continue or stop your SIPs
- •Recent stock market volatility has made retail investors question if mutual funds are still the right choice compared to fixed deposits.
- •Expert Viral Bhatt advises that evaluating the entire mutual fund industry solely based on Nifty or Sensex performance is incorrect.
- •Stopping SIPs during a market downturn is a major mistake because lower prices allow investors to accumulate more units for better compounding.
- •Investors with long-term goals of 7 to 15 years should stay invested, while short-term goals should rely on FDs or debt funds.
Key Questions Answered
According to expert Viral Bhatt, stopping ongoing SIPs during a market downturn is a major mistake. SIP mechanisms are built to leverage market drops by allocating more units at lower prices, which boosts portfolio returns during market recoveries.
No, assessing the entire mutual fund industry solely by the Nifty or Sensex is incorrect. While large-cap indices remained pressured, diversified categories like flexi-cap, mid-cap, and small-cap funds have delivered excellent returns.
For short or medium-term goals lasting two to five years, experts advise relying on debt funds, fixed deposits, balanced advantage, or multi-asset hybrid funds instead of taking risks in pure equities.
