Positive impactEconomy
Is your SIP in the red after 2 years? Know when 69% of these weak starts entered double-digit return territory
Mint 56 min ago·7 Sept 2026, 5:17 pm
A weak start to your Systematic Investment Plan (SIP) does not necessarily mean you should stop investing. Data analysis of the Nifty 500 index shows that a negative return over the first two years is actually quite common. The key takeaway is that time in the market tends to smooth out these early fluctuations.
For investors, this suggests that short-term volatility should not drive decisions to exit a fund. Historical trends indicate that a significant majority of SIPs that underperformed initially eventually delivered strong returns over a longer horizon, such as five years.
Going forward, the focus should remain on your long-term financial goals rather than reacting to short-term market noise. Investors should continue their investments and review their portfolio only at regular intervals, rather than panicking during temporary downturns.
Excerpt from Mint
A weak or negative SIP return in the first two years may not be a reason to exit. An analysis of two decades of Nifty 500 TRI data found that nearly 69% of cases with negative two-year SIP returns delivered double-digit annualised returns by year five, while none remained negative. If your equity mutual fund SIP has…Read the original at Mint
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
