Markets flat for 2-3yr and my Rs 20k SIP has barely moved. Is it time to stop?
Published 25 October 2026
A young professional has been running a Rs 20k monthly SIP across two equity funds for about 3yr now.
The last 2-3yr have been mostly flat.. XIRR is close to what their old RD used to give and some months it even dips below what they invested.
Say, the money is meant for their retirement around age 55 and partly for their daughter's higher studies in about 12yr.
His friends constantly say equity is overrated and they should just move to FDs. Now some part of them agrees because it also feels like they are paying for nothing. What would you say to them?
The last 2-3yr have been mostly flat.. XIRR is close to what their old RD used to give and some months it even dips below what they invested.
Say, the money is meant for their retirement around age 55 and partly for their daughter's higher studies in about 12yr.
His friends constantly say equity is overrated and they should just move to FDs. Now some part of them agrees because it also feels like they are paying for nothing. What would you say to them?
If your SIP money is meant for goals 10-20yr away, a stretch of 2-3yr with flat returns is a normal part of the equity cycle rather than a reason to stop.
It helps to remember what you actually own. An equity fund is just a diversified basket of businesses, and when you invest in it, you are betting that those businesses will do well over the long term. Businesses don't grow in a straight line, and their share prices grow even less smoothly.
That is why patience matters so much in equity, and the riskier the asset, the more patience it asks of you. The SIP idea grew out of the old recurring deposit habit our parents had, where you put a fixed amount away every month and don't think too much about it.
The big difference is that a SIP goes into a volatile asset. The whole point of a small monthly amount is that you ride out the ups and downs without stress because no single month's entry price decides your outcome. In flat or falling months, your money simply buys more units.
Those accumulated units are exactly what will eventually do the heavy lifting when the market cycle turns. Looking at history, the Indian mutual fund industry grew from roughly Rs 5L crore in 2008 to over Rs 80L crore today. That massive growth did not happen in smooth markets.
It happened through difficult years with plenty of stretches when investors saw little or nothing for a while. The people who actually made money in equity over these decades are mostly the ones who stayed put through such phases, not the ones who timed their exit after a dull patch.
To make a practical decision, consider asking three simple questions. Is this money tied to a specific goal, is that goal more than a decade away, and has anything changed in your own life like a sudden need for cash? If the goal is still far away and your life situation hasn't changed, the flat returns are telling you about the market cycle, not about your plan.
For the portion meant for your daughter's studies in about 12yr, you still have plenty of time. As that date comes within the last few years, you can then think about gradually moving that portion into safer options. Until then, a once-a-year review is usually enough to ensure things are broadly moving in the right direction.
Checking the XIRR every few weeks during a flat phase mostly adds anxiety and rarely improves your investment decisions. Let the process work quietly in the background.
Based on Raghav's podcast with Sachin: https://foliyo.ai/blog/wealth-management-in-ai-era/
Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.
It helps to remember what you actually own. An equity fund is just a diversified basket of businesses, and when you invest in it, you are betting that those businesses will do well over the long term. Businesses don't grow in a straight line, and their share prices grow even less smoothly.
That is why patience matters so much in equity, and the riskier the asset, the more patience it asks of you. The SIP idea grew out of the old recurring deposit habit our parents had, where you put a fixed amount away every month and don't think too much about it.
The big difference is that a SIP goes into a volatile asset. The whole point of a small monthly amount is that you ride out the ups and downs without stress because no single month's entry price decides your outcome. In flat or falling months, your money simply buys more units.
Those accumulated units are exactly what will eventually do the heavy lifting when the market cycle turns. Looking at history, the Indian mutual fund industry grew from roughly Rs 5L crore in 2008 to over Rs 80L crore today. That massive growth did not happen in smooth markets.
It happened through difficult years with plenty of stretches when investors saw little or nothing for a while. The people who actually made money in equity over these decades are mostly the ones who stayed put through such phases, not the ones who timed their exit after a dull patch.
To make a practical decision, consider asking three simple questions. Is this money tied to a specific goal, is that goal more than a decade away, and has anything changed in your own life like a sudden need for cash? If the goal is still far away and your life situation hasn't changed, the flat returns are telling you about the market cycle, not about your plan.
For the portion meant for your daughter's studies in about 12yr, you still have plenty of time. As that date comes within the last few years, you can then think about gradually moving that portion into safer options. Until then, a once-a-year review is usually enough to ensure things are broadly moving in the right direction.
Checking the XIRR every few weeks during a flat phase mostly adds anxiety and rarely improves your investment decisions. Let the process work quietly in the background.
Based on Raghav's podcast with Sachin: https://foliyo.ai/blog/wealth-management-in-ai-era/
Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.
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