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Low SIP Returns After 2-3 Years? Know Why You Should Not Panic
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News18•10-10-2026, 10:02
Low SIP Returns After 2-3 Years? Know Why You Should Not Panic
- •Do not rush to stop your SIP after just two or three years of weak returns as the stock market moves in cycles.
- •Compare your fund's performance with its benchmark to see if the entire category is underperforming or just your fund.
- •Identify the reasons for poor performance by checking for changes in fund strategy, fund manager, or risk levels.
- •Revisit your original financial goals and investment horizon before making any changes to your ongoing SIPs.
- •Evaluate your entire investment portfolio rather than a single fund to see if other investments are balancing out the losses.
Key Questions Answered
Investors should avoid stopping their SIPs out of panic or short-term underperformance. Instead, they should analyze factors like benchmark comparison, fund strategy changes, and whether their original investment goals remain unchanged.
You should compare the fund's returns against its category benchmark. If the benchmark and the broader category also experienced weak performance, blaming the fund alone is incorrect, whereas consistently lagging behind a stronger benchmark requires deeper analysis.
Investors should check if there have been any alterations to the fund's investment strategy, a change in the fund manager, major modifications to the portfolio, or a shift in the overall risk level of the fund.
