SIPs: Why Investors Quit Early and How to Be Consistent
SIPs grow wealth through long-term discipline and compounding, but many investors quit early out of fear. Staying invested is more important than timing the market.
SIPs have become one of the most popular ways for people in India to build long-term wealth. But experts say that almost 90% of investors stop their SIPs within the first three years. At ISH, we regularly share mutual fund and finance courses, and many Deaf learners may already know these terms. For others, this simple explainer will help.
A SIP (Systematic Investment Plan) is a method where you invest a fixed amount every month into a mutual fund. It works like a monthly savings habit, but instead of a bank, your money goes into the market. Once you choose the amount—?500, ?1,000, or more—it gets invested automatically. The biggest benefit is that market ups and downs do not stop the SIP. Over time, the money grows because of compounding.
However, many people stop SIPs early due to fear. In the first year, they feel excited. When markets fall in the second year, they panic. By the time markets recover, they feel regret for stopping. Another reason is wrong expectations. SIPs are not a quick-money tool; they work best over 10–20 years.
Stopping a SIP early is costly. For example, if you invest ?5,000 a month for 20 years, your ?12 lakh investment can grow to around ?45 lakh. But if you stop for just 3 years, you could lose ?15 lakh or more because you miss both investment and compounding.
Experts advise treating SIP like a fixed monthly bill, staying invested during market falls, reviewing funds only once a year, and avoiding emotional decisions. SIPs reward discipline, not panic.
