Should you stop SIP if the stock market is at a high? Know the answer from the experts

Should You Stop SIP When the Market Is at a High? Experts Warn Against This Costly Mistake

As the stock market hits new record highs, many investors are asking a crucial question: Should I stop my SIP (Systematic Investment Plan) now? With fears that investing at high valuations could reduce returns or even result in losses, a rising number of individuals are choosing to pause their SIPs. But financial experts warn that this move could be short-sighted and potentially damaging to your long-term financial goals.

Over 1.12 Crore SIP Accounts Closed in 2025 Alone

According to data from the Association of Mutual Funds in India (AMFI), nearly 1.12 crore SIP accounts have been closed since the beginning of 2025. This suggests that a large number of investors are attempting to time the market—halting their investments at peaks and hoping to re-enter during a dip. However, experts say this strategy rarely works in favor of the average investor.

SIP and Dip-Buying Can Go Hand-in-Hand

Swati Saxena, Founder and CEO of 4Thoughts Finance, advises against stopping SIPs during market highs. Instead, she recommends continuing monthly SIP contributions and using any extra funds to invest more when the market dips. “Monthly savings should consistently go into SIPs. If the market dips, use the opportunity to invest additional amounts. This dual strategy offers great long-term benefits,” Saxena explains.

She also cautions that it’s nearly impossible to accurately predict market dips. “Identifying dips is tricky, so a better strategy might be to divide your lump sum investments into parts—some for SIPs and some for opportunistic buying during downturns,” she adds.

Why Halting SIPs Can Backfire

Harsh Gahlot, Co-founder and CEO of FinEdge, also emphasizes that stopping SIPs can be a mistake. “It may seem logical to stop SIPs when the market is high, but doing so may harm your financial goals. The true advantage of SIP lies in disciplined, emotion-free investing,” he says.

Gahlot points out that the Indian market has reached new highs several times in the past decade—and has continued to grow further after each high. “Had investors paused their SIPs at every peak, they would have missed out on significant gains.”

SIP is About Discipline, Not Market Timing

Ishkaran Chhabra, Chief Investment Counselor at Centricity WealthTech, calls the decision to stop SIPs counterintuitive. “History shows that investors who remain consistent with their investments tend to earn better returns. Frequent entry and exit do not usually pay off,” he says.

Swati Saxena echoes this view, highlighting that SIPs are meant to channel regular savings into the market. “If done consistently and with discipline, SIPs harness the power of compounding. Changing SIPs based on short-term market movement can lead to poor outcomes,” she warns.

Balancing SIP with Smart Lump Sum Investments

Saxena further suggests that instead of investing a large lump sum all at once, it’s smarter to break it down and invest it in intervals—similar to SIPs. “A good mix of SIP and dip-buying strategies allows investors to benefit from both rising and falling markets,” she advises.

She also cautions investors against frequently switching SIP portfolios or ETFs out of panic or market noise. “Stay informed, but avoid making emotional decisions. It’s better to consult a professional financial advisor and trust their long-term guidance,” she concludes.

Key Takeaways:

• Don’t pause SIPs just because the market is high—discipline and consistency are key.

• Use market dips as an opportunity for additional investments.

• Avoid emotional decisions or frequent changes to your portfolio.

• Consult a financial advisor before making any significant investment decisions.