Stock Market Negative Returns SIP, Major MF Scheme Up To 9% Declining

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Due to the decline in the stock market over the last two months, the return of Systematic Investment Plan (SIP) has been negative in many equity mutual fund schemes. The returns of one-year's SIP in several equity mutual funds are up to 9 percent negative. Although most of the information believes that this time is not to stop investing in SIP, doing so will only cause more damage.

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Stock Market Crashed By Three Shocks

Since the budget is introduced on February 1, the stock market is continuously falling. In the budget, there was a proposal of dividend distribution tax along with long-term capital gains tax in the stock market. This led to a decline in the stock market for several days. As soon as the fall was there, the Fraud was found in PNB. Later similar frauds appeared in many other banks. After this, the recession began again in the stock exchanges. After this, when everything seemed normal then now the trade war started between the United States and China. It is affecting the whole world. This has also seen a decline on the Indian stock exchange.

Fall in the stock market

According to Ajay Kejariwal, President of Choice Broking, the fall in the stock market remains intact. The Indian stock market has witnessed a big fall But later markets have set new records on their fundamentals. But they have got good advantage, who invested in the right place during the fall. There are some occasions in every fall, they need to understand them. If someone's SIP is operating in a good equity mutual fund, then he must continue. Anyway, it is said that investing in SIP should be done for a long time. Even today if someone's SIP has been running for more than 3 years then it is not harmed. Its returns may be fewer, but such investors are in profit. Therefore, worrying about this decline should not stop investing in SIP.

Do not try to time the market investor

According to Mridul Kumar Verma, Vice President in Stockkhana, investors should not try to time the stock. Because it is not possible to know when the market will be at the top when it is lowest. In such a scenario, it should be invested only by creating a special strategy. At this time, the returns of many SIPs of one year have been negative, but this does not mean that the investment should be closed. If SIP is running in the good scheme, then it must continue in this fall period. Its advantage is very good later on.

SIP invested in negative

According to Ape Corporation of Financial Advisor firm BPN Finkap, investing through SIPs is best at such a time of decline. The main basis of investment through SIP is to invest more and more in the fall. Through this, the form of averaging works in the investment. The higher the investment in the fall, the better the average of the mutual fund scheme will be. After this, when the stock market goes up a little bit then the investor will get good returns. Therefore investors of SIP should not shut this down in this fall. This time is good for investing. The fall period does not go much longer, in such a situation as soon as the stock market starts to improve, investors will soon be able to see the benefits.

 Returns of some schemes invested through SIP

Mutual fund scheme	Negative return in 1 year
Reliance Vision Fund	-9.04 percent
BNP Paribas Midcap Fund - Direct Plan	-7.40 percent
Birla Advantage Fund	-5.27 percent
JM Multi Cap Strategy Fund	-4.61 percent
Motilal Oswal Focused 25 Fund - Regular Plan	-4.35 percent
HDFC Equity Fund - Direct Plan	-2.62 percent
Reliance Focused Large Cap Fund - Direct Plan	-2.60 per cent
DSP Focus Fund	-2.22 percent
Bidla Top 100 Fund	-2.57 percent
Escorts High Yield Equity Fund	-2.34 percent

Note: Data for March 22, 2018

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