The US market is at an all-time high. Should I wait for a crash before starting my SIP?

Statistically speaking waiting for a market dip is a losing strategy because broad indices spend the vast majority of their time near all-time highs. Data shows that over the last 10 to 20yr the S&P 500 has been within 15% of its 1yr high about 90% of the time. Because the market is almost always near an all-time high it will perpetually feel too expensive to enter.

If you wait for a major crash you may be waiting for years while missing out on compounding. Furthermore because markets trend upward over time the dip you eventually buy into 5yr from now will likely be higher than today's all-time high.

The best strategy is to start your Rs 25k SIP right now regardless of market highs. Take a broad index like the S&P 500 or Nasdaq and invest a fixed amount every month.

You should also keep some cash aside for corrections. If the market does experience a significant dip you can use that opportunity to deploy a lump sum amount at lower valuations.

Many investors also mistakenly believe that the US market will be less volatile because it is a developed economy. The Nifty 50 has an annualized volatility of around 16% while the S&P 500 is actually higher at 18%. You must enter the US market with the expectation that equity markets are inherently volatile regardless of the country's economic maturity.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.