Neutral impactSector
Planned 10% SIP step-up: Should you proceed if your mutual fund is delivering negative returns? Expert weighs in
Mint 1 hr ago·14 Oct 2026, 8:41 am
Investors often face a dilemma when their mutual fund delivers negative returns but they have a step-up Systematic Investment Plan (SIP) scheduled. A step-up increases your investment amount periodically, which can be beneficial during market downturns. This strategy, known as rupee-cost averaging, allows you to buy more units at a lower price, potentially reducing the average cost per unit when the market recovers.
However, simply continuing a step-up blindly is not always the right move. You must assess the fund's long-term performance and the reason for its underperformance. If the fund consistently lags behind its benchmark or the category average over a significant period, it may be a sign of poor management or a change in strategy. Investors should review the fund's track record and align their decision with their long-term financial goals.
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