Experts believe that there is no such thing as a ‘right’ or ‘wrong’ time to start a SIP, because the success of a SIP isn’t dictated by market conditions. It’s driven by behaviour, consistency, and clarity of purpose.
New Delhi: The market has been extremely volatile over the past few months, mainly because of US President Donald Trump’s tariff threat. While market volatility often tempts existing investors to pause their Systematic Investment Plan (SIP), there are certain things that first-time investors should know before starting their SIPs.
According to Harsh Gahlaut, Co-founder & CEO at FinEdge, the most important truth to grasp for first-time investors in a volatile market is that volatility isn’t a threat — it’s an opportunity.
“The early phases of your investment journey may very well show negative returns, and that’s perfectly normal. In fact, it’s desirable. Why? Because the entire strength of SIPs lies in rupee cost averaging — the ability to accumulate more units when markets are down. Historically, some of the most rewarding investment journeys have begun in turbulent times,” Gahlaut said.
The second critical point is about expectations. Great long-term returns are rarely built in straight lines. They are forged through the discipline of staying invested across multiple market cycles — ups and downs included. The more volatile the market in your initial investing years, the stronger the foundation you build for future wealth creation.
“We often remind our clients – don’t judge your SIP by what it looks like after 6 or 12 months. Judge it by how much it helped you stay committed to your financial goals through uncertainty. SIPs are not market-timing tools — they are behaviour-management tools,” he said.
Volatile markets test belief. But with the right mindset, purpose, and a disciplined investing process, volatility becomes a friend, not a foe.
Is it right time to start SIP?
Experts believe that there is no such thing as a ‘right’ or ‘wrong’ time to start a SIP, because the success of a SIP isn’t dictated by market conditions. It’s driven by behaviour, consistency, and clarity of purpose.
“What makes SIPs powerful is their ability to help investors develop a mindset of ‘saving first, spending later’. It’s a habit-forming tool, not a market-timing strategy. Starting early — even during a volatile phase — allows investors to accumulate more units when markets fall, which in turn boosts long-term returns through rupee cost averaging and the power of compounding,” he said
But here’s the caveat – SIPs work only when they’re tied to clearly defined financial goals, realistic expectations, and a strong investment process. If someone starts a SIP hoping to chase short-term returns or based on market noise, it could lead to frustration and early exits.
Best Time To Start SIP
The best time to start a SIP is when investors have taken the time to understand their financial goals and are ready to commit to them with discipline. Markets will fluctuate — but your goals don’t. And that’s the whole point of starting a SIP — to bridge the gap between where you are and where you want to be financially, one disciplined step at a time.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
