Market Update
·
March 14, 2026
Markets Fell This Month —
Should You Stop Your SIP?
Nifty 50 dropped over 4% this month and panic is in the air. Your phone is buzzing with news alerts. Your WhatsApp group is full of hot takes. Here’s what the data actually says.
Market dips are when SIPs work hardest for you — here’s the proof.
Index price
SIP buy points
Dip zones
What just happened to the markets?
The Nifty 50 shed roughly 4.2% this month, driven by a combination of global risk-off sentiment, FII outflows, and concerns around crude oil prices. Midcap and smallcap indices fell harder — some stocks down 8–15% from recent highs.
Your SIP portfolio is showing red. The notification says your portfolio is down. Your instinct says: stop the SIP, wait for things to calm down, re-enter when it feels “safe” again.
That instinct — however natural — is the single biggest mistake SIP investors make. And it’s exactly what the data says not to do.
Busting the most common SIP myths during a fall
How rupee cost averaging works in a falling market
Rupee cost averaging (RCA) is the mathematical engine behind every SIP. When you invest a fixed amount every month, you automatically buy more units when prices are low — and fewer when prices are high. Here’s a real example:
| Month | NAV (₹) | Market | Units Bought | Total Units |
|---|---|---|---|---|
| October | 120.00 | +2.1% | 41.67 | 41.67 |
| November | 115.00 | −4.2% | 43.48 | 85.15 |
| December | 108.00 | −6.1% | 46.30 | 131.45 |
| January | 112.00 | +3.7% | 44.64 | 176.09 |
| February | 106.00 | −5.4% | 47.17 | 223.26 |
| March | 110.00 | −3.8% | 45.45 | 268.71 |
| Average buy price | ₹111.76 | vs current NAV ₹110.00 | ||
Notice: the average cost per unit (₹111.76) is lower than the peak NAV (₹120). Dip months bought more units — pulling down the average. This is the SIP advantage working exactly as designed.
Stop vs. continue — what the numbers show
Let’s look at what happened to investors who stopped SIPs during past major crashes versus those who stayed invested:
| Market Event | Fall % | Stopped SIP — 3yr return | Continued SIP — 3yr return |
|---|---|---|---|
| COVID Crash (Mar 2020) | −38% | +18% | +74% |
| IL&FS Crisis (Oct 2018) | −15% | +12% | +41% |
| Demonetisation (Nov 2016) | −9% | +22% | +51% |
| Global FII Selloff (2022) | −17% | +9% | +38% |
*Returns are illustrative based on large-cap equity fund category averages. Past performance not indicative of future results.
The only reasons to actually pause your SIP
To be fair — there are valid reasons to pause or restructure. Market performance is not one of them. Here are the legitimate ones:
Instead of stopping your SIP, consider this: if you have surplus cash sitting in savings earning 3–4%, this is actually a good time to do a lump sum top-up into your existing fund alongside your SIP.
What you should actually do right now
Concrete actions — in order of priority:
Stay the course. Let compounding do its job.
The investors who built real wealth through SIPs are those who didn’t flinch during the red months.
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