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The Indian market dropped 7% due to the Iran-US war. SIP stoppage hit 75.62% in February. Experts advise against stopping SIPs, suggesting it’s a buying opportunity.
Geopolitical turmoil sends shivers in global equity markets
The Indian equities market has been beaten hard with the ongoing Middle East crisis triggered by the Iran-US war. Benchmark indices, including Sensex or Nifty, fell over 7 per cent since the first time US and Israel launched missile strikes on Iran on February 28, 2026.
The market downturn and volatility have soured the investors’ sentiment, with the Systematic Investment Plan (SIP) stoppage ratio hitting a record high. As per AMFI’s latest data, SIP stoppage ratio, the number of SIPs discontinued or matured against the new registrations, touched 75.62 per cent in February from 74.83 per cent in January.
Amid the grim scenario, when darkness prevails all around, investors develop a mentality to save their hard-earned money by putting it somewhere else where there’s less volatility and risk.
However, experts beg to differ from this approach. They say it’s not a good move to withdraw and stop their SIPs for mutual fund.
“But it’s actually the worst move that one can make,” says Rohan Goyal – Investment Research Analyst of MIRA Money.
Investors need to understand this thing: When the markets are down, your SIPs help you buy more units of mutual funds for the same amount. “More units at a lower price means that when the market eventually recovers, your gains are bigger,” explains Goyal, adding that stopping your SIP means you miss out on buying at the “sale price”.
Is It A Buying Opportunity?
This could be an opportune time to gradually start allocating capital to the broader market, says N. ArunaGiri, CEO of TrustLine Holdings.
ArunaGiri states that every geopolitical crisis has eventually turned out to be a compelling buying opportunity, especially in the broader small and mid-cap segments in the Indian context.
“It is time to invest, not to time the bottom,” ArunaGiri adds with a caution, “However, the approach needs to remain selective, bottom-up, and gradual.”
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
March 13, 2026, 12:19 IST
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