SIPs in Market Crashes: How Consistent Investing Builds Wealth

• SIPs involve regular, fixed investments, allowing investors to benefit from market growth over time.
• Mutual funds are affected by market crashes, with NAVs falling as underlying security prices drop.
• Market downturns lead to increased redemption requests, forcing fund managers to sell assets at lower prices.
• SIPs leverage market declines: the same investment buys more units when prices are low, accumulating more units for future recovery.
• Discipline, patience, and a long-term perspective are crucial for SIP investors to maximize benefits during market volatility.

Why It Matters: SIPs turn market volatility into an advantage by buying more units at lower prices during downturns.