covid-19 recommendations 2020 strain

Continue your SIPs if they are not a strain on cash flow, say advisers

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SIP stoppage ratio is up but largely due to fewer fresh registrations rather than discontinuation of existing SIPs In what shows that economic distress and market turbulence are weighing on investors’ confidence, the systematic investment plan (SIP) stoppage ratio jumped to a fresh high in March 2020.

The ratio measures SIP stoppages as a percentage of fresh SIPs registered. It hit a level of 71% in March, meaning that for every 10 new SIPs being registered, seven were being closed.

The benchmark indices collapsed by around 23% in that month on the back of rising cases of covid-19 and the national lockdown that followed.

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