Why Patience Pays? How Continuing SIPs in Crisis May Reward You

Let’s consider the investment journey of two investors, Mr. A and Mr. B. Both started investing in the HDFC Flexi Cap Fund at the same time via an SIP of Rs.10,000.

Let’s assume that both investors begin their SIPs in the same year as the market crisis and continue investing for a total period of five years. However, during this time, Mr. B temporarily stops his SIP investments for six months when the markets hit their bottom, while Mr. A continues investing without interruption.

Under each scenario, Mr. B paused his SIPs when the markets hit their lowest in the respective investment periods. He missed out on one of the key advantages of SIP, that is buying more units when the markets are down.

Across all three crises, Mr. B invested less, but more importantly, he missed buying at lower prices, which reduced his long-term wealth as compared to Mr. A. Avoiding panic and staying patient is the key when the markets are going through a tough time. It is about time in the market and not timing the market.

Assuming ₹10,000 invested systematically on the first Business Day of every month over a period of time. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan.

Common notes for the above table A & B: Past performance may or may not be sustained in future and is not a guarantee of any future returns.*Since Inception date:- January 1, 1995. #NIFTY 500 Index (TRI) ##Nifty 50 Index (TRI). The scheme is managed by Mr. Amit Ganatra since February 01, 2026. Returns greater than 1 year period are compounded annualized (CAGR). As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from January 1, 1995 to June 29, 1999 and TRI values since June 30, 1999. Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged in the Regular Plan. Load is not taken into consideration for computation of performance. Returns as on February 27, 2026.

For performance of other funds managed by fund manager, Please click here.

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.