Stories
Why Investors Must Continue SIPs Despite Market Lull Says WhiteOak Capital AMC CEO
- •WhiteOak Capital AMC CEO Aashish Somaiyaa advises investors against stopping systematic investment plans during flat or declining market phases.
- •Equity returns are rarely distributed evenly over a five-year period, with major gains typically concentrated in a 12 to 24 month window.
- •Continuing SIPs during market consolidation helps lower the average purchase cost by acquiring more units at corrected prices.
- •Somaiyaa points to improving corporate performance, tax collections, and credit offtake as drivers for stronger future returns over the next three to four years.
- •Investors are encouraged to diversify through hybrid funds, mixed-asset classes, and alternatives like REITs and InvITs to reduce single-asset dependency.
Key Questions Answered
WhiteOak Capital AMC CEO Aashish Somaiyaa explains that continuing SIPs during a market lull helps reduce the average purchase cost as you buy units while prices correct, and stopping them defeats the purpose of systematic investing since equity returns are typically concentrated in a 12-24 month window over a five-year period.
The positive outlook is supported by improving corporate performance, better tax collections, strong credit offtake, and more attractive valuations following recent time corrections.
Investors can look into hybrid and mixed-asset funds that allocate across equities, gold, and fixed income, as well as alternative listed instruments like REITs and InvITs that derive their income from underlying rental or toll collections.
