In uncertain markets, investors often find themselves frozen between fear and opportunity. When headlines swing between optimism and panic, the temptation is to wait for clarity. Yet clarity rarely arrives on time, and those who step aside end up missing years of potential compounding. In this backdrop, systematic investment plans—SIPs—offer a way to keep moving when the environment feels unpredictable.
The value of a SIP becomes most visible during periods of volatility. Markets that rise steadily make investing look easy, but unpredictable markets test an investor’s discipline. Prices move sharply, sentiment shifts overnight and it becomes difficult to judge whether today is the right time to invest. A SIP removes that judgement call. It commits a fixed amount of money at regular intervals, allowing the investor to participate consistently without having to decode short-term noise. What feels like a mechanical process is, in fact, a behavioural advantage. It forces participation when the natural instinct is to wait for comfort.
Ensuring investing discipline
1 January 2026
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Uncertainty tends to create two problems: investors either withdraw prematurely after a fall or delay investing until prices climb again. Both reactions can harm long-term returns. Because a SIP invests across market cycles, it naturally buys more units when prices are low and fewer when they are high. Over time, this average cost effect cushions the impact of volatility. The investor who stays committed through unstable phases often ends up with a lower overall cost and a more meaningful corpus than someone who keeps trying to time the bottom.
But SIPs are not merely a hedge against volatility; they are a way to maintain financial rhythm and start building a solid foundation. Most households cannot afford to build wealth only in “good times.” Income flows every month, expenses occur every month, and long-term goals—retirement, education, a home—demand steady preparation. A SIP aligns investing with this monthly rhythm. It creates a sense of normalcy even when markets behave abnormally.
By staying the course, investors give compounding the time and space it needs—regardless of how turbulent the journey becomes. For example, mid-caps has delivered returns of 17.9% CAGR over the last 10 years at an index level. A SIP of ₹10,000 in Edelweiss Mid Cap Fund over the last seven years would have grown to a corpus of ₹20 lakh (as on 12 December 2025).
Beyond return chase
Uncertainty also makes it tempting to chase what is working in the moment—shifting between themes, sectors or asset classes based on recent performance. This rarely produces better outcomes. A well-chosen SIP portfolio, held through cycles, allows the underlying fund managers to navigate the opportunity set while you focus on consistency. And if the environment truly changes—say, inflation rises, rates shift, or global risks intensify—adjustments can be made gradually through asset allocation rather than through abrupt halts and restarts.
Perhaps the most underrated role of SIPs in uncertain markets is psychological. When the future feels unstable, long-term investing can seem abstract. A SIP makes the act of investing tangible. You cannot control the direction of markets, but you can control your behaviour. In many ways, the SIP is a commitment to that behaviour. SIPs simply provide a structured way to keep walking when the ground feels uneven.
Disclaimer: This is an advertorial communication published under the Spotlight tag and is not an Outlook Money editorial feature. The views expressed are those of the author.
Rushi Khatri is the Managing Partner at Dolfin Investments.
Mutual fund investments are subject to market risks, read all scheme related documents carefully
