If your investment app is showing a loss on your SIP right now, take a breath — you haven't made a mistake.
Right now, over one in three 2-year SIPs across big-company, mid-sized-company, and smaller-company funds are sitting in the red — because markets have been rough, and SIPs started at the wrong time just catch that wave.
The honest truth: when you start, where you invest, and how long you stay in all matter just as much as the habit of investing itself.
What this means for you
- A loss on your SIP screen today is a paper loss — meaning it only becomes real money lost if you withdraw right now; if you stay in, it can still recover.
- SIPs in smaller-company or single-sector funds (ones that bet on just tech or pharma, for example) are hurting the most — if that's where yours runs, expect more short-term swings before things turn around.
- A SIP started in January 2024 at market peaks will look worse today than one started in mid-2023 — same habit, different timing, very different result.
What you can do
- Don't stop your SIP — stopping while markets are down locks in the loss and you miss the recovery that follows; just keep the auto-debit running.
- Check if your SIP is in a high-risk category like smaller-company or single-sector funds — if you need that money within 3 years, consider shifting part of it to a flexi-cap fund (one that spreads across company sizes) or a large-cap fund (big, stable companies only).
The habit got you here — now staying put is the actual work.
Grow with clarity 🌱