In volatile times, SIPs shine as a resilient way of investing. They inherently buy more units when prices fall, a concept known as rupee-cost averaging, which mitigates risk. During high volatility, this methodually yields a better purchasing power.
Moreover, some funds are specifically designed to thrive during these turbulent periods. The ones tightening their grip on market dynamics may even perform counter-cyclically, becoming the bedrock during economic downturns. But what might they turn into after a storm?
Understanding market signals can bolster your SIP strategy. Funds that leverage algorithm-driven insights, like some tech funds, have predicted upswings successfully. Utilizing artificial intelligence in fund management is a rising trend with stunning track records, catching the industry by storm.
Preparedness and patience go hand in hand. As markets see-saw wildly, experienced SIP investors remind themselves not to react to every fluctuation but keep an eye on the long-term horizon. But wait, could pulling back ever prove beneficial? Uncover the answer, next!