Stopping Your SIP During a Market Crash Is the Worst Time to Stop — Here's What Actually Happens and When Stopping Is Rational
Stopping a SIP during a market downturn is the most damaging timing mistake — it's when NAV is lowest, meaning each monthly contribution buys the most units cheapest, and those units benefit most from the recovery. Here's what actually happens to accumulated corpus when a SIP stops (it stays invested, doesn't sell), the three situations where stopping is financially rational, and why redeeming units during a downturn converts a paper loss into a permanent one.