Dealing with Loss-Making SIPs

Despite diligently investing in mutual funds via regular SIPs with honesty and consistency, investors may still encounter negative returns. In such situations, it’s crucial for investors to understand the underlying factors leading to negative returns and take necessary steps. Rakesh Deshmukh takes a closer look at this scenario 

Have you ever experienced buying a product, such as an electronic gadget or a mobile phone, for around ₹50,000, only to find it later available at a discounted price of, say, ₹45,000? It’s a common occurrence where items purchased at one price are subsequently found at lower prices. Similarly, in the world of financial markets, you might plan to purchase shares of your favourite company, monitoring them closely for a month before buying. However, sometimes after your purchase, the share price drops below your purchase price, resulting in the shares trading at a discounted price compared to what you paid.