Panic Pauses in SIPs Can Cost Investors Rs 4-5 Lakh Over a Decade

• Recent market volatility, with Nifty 50, Midcap, and Smallcap indices falling, is testing investor nerves.
• Many investors consider pausing or stopping SIPs during market downturns, driven by emotional reactions to volatility.
• Industry experts emphasize that investor behavior, particularly staying invested, is more crucial than fund selection for long-term returns.
• A study shows that an emotional investor pausing SIPs for two years during volatility could lose Rs 4-4.5 lakh over a decade compared to a disciplined investor.
• Stopping SIPs during market corrections means missing out on buying more units at lower prices, interrupting compounding and reducing long-term wealth.