Positive impactStocks
No SIP returns in 2 years? Prashant Jain explains why that's good news for your wealth
Economic Times 1 hr ago·8 Oct 2026, 10:25 am
Prashant Jain, a veteran investor, argues that a period of zero returns on Systematic Investment Plans (SIPs) can actually be a positive development for long-term investors. This happens when the market price of the fund's underlying assets falls below the cost price at which units were purchased. While seeing a flat portfolio value can be discouraging, Jain suggests this phase allows investors to buy more units at a lower price. This strategy, often called rupee-cost averaging, can significantly reduce the average cost of the investment over time.
This approach matters because it helps investors build a larger portfolio at a lower cost, potentially boosting returns when the market eventually recovers. It encourages a long-term perspective, helping investors avoid the emotional temptation to panic and sell during market downturns. Instead, they can continue their SIPs, effectively 'averaging down' their entry price. This disciplined approach is designed to enhance wealth accumulation when the market turns bullish again.
Investors should focus on their long-term financial goals and stay invested through the market cycle. They should continue their SIPs regardless of short-term market fluctuations. The key is to maintain discipline and trust the long-term compounding effect of the investment strategy. What matters most is the total return over the entire investment horizon, not the performance in any single year.
Key takeaways
- Category: Stocks.
- AI reads the tone as positive (potentially bullish) for the stock.
Why it matters
A routine update. 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.
