SIP returns disappointing? Here's when to stay invested and when to switch funds
Investment experts advise against switching mutual funds based on disappointing Systematic Investment Plan (SIP) returns in the initial years, as these returns can be influenced by broader market conditions. They recommend evaluating fund performance over a full market cycle of three to five years to determine if underperformance is due to structural issues or temporary market fluctuations. Investors should remain patient, as early weak returns may improve when markets recover, allowing the benefits of long-term compounding to materialize.