Markets in free fall after Trump tariffs: Is this the right time for investors to stop SIPs? Experts weigh in

Market in freefall: Stock markets in India and abroad have declined considerably in the past few days due to US President Donald Trump's announcement of imposing reciprocal tariffs on its trading partners. The US administration has announced a 27 per cent tariff on imports from India.

On Friday, the Sensex closed 1.22 per cent lower, while the Nifty 50 ended with a loss of 1.49 per cent. The benchmark Nifty 50 index is nearly 12.8 per cent lower than its peak of 26,277, which it hit on September 27 last year.

Is this, therefore, the right time to stop your systematic investment plans (SIPs)? We spoke to some market experts and this is what they have to say.

Market fall: 4 key money lessons to follow

Continue your SIPs: Wealth advisors say that investors should continue their monthly contribution to mutual fund investment via systematic investment plans (SIPs), regardless of market fall. Preeti Zende, founder of Apna Dhan Financial Services, says the fall of stock prices should not be a reason for pausing the SIPs.

“If you are investing in equity mutual funds towards your long-term goals, it is the best time to continue your SIPs to get more units in market correction. This helps you to increase portfolio value once the market starts recovering,” says Zende.

Funds to invest: Experts believe that investors should invest in hybrid funds and large-cap funds to avoid considerable volatility in their portfolios. “Investors should invest in large-cap and multi-cap funds. Also, if someone wants to invest in a thematic fund, they can explore banking and financial services as a sector,” says Sridharan Sundaram, founder of Wealth Ladder Direct.

CA Deepak Gupta, founder of Finvestmentpro, says retail investors should consider balanced advantage funds, multi-asset funds and large-cap mutual funds since these categories offer diversification, stability and long-term growth.

Patience is key: Another timeless piece of advice wealth advisors give to investors is to have patience and take a long-term view of the market. “Investors should look at the long-term growth of their portfolio, and they can even put more money in the market if they want to stay invested for the next 3 to 5 years,” adds Sundaram.

Siddharth Alok, AVP, Investments, Epsilon Money says, “History suggests that after a 15-20 percent fall, future returns are typically decent. We must understand that buying when the prices are low could mean picking up quality assets at a discount, especially if you’re in it for the long haul.”

Right time for asset reallocation: He also highlights that steep market correction is the right time for asset reallocation. “If the equity-to-debt ratio is supposed to be 70-30 and after the decline in the market, it has changed to 60-40, then it is the right time for investors to re-allocate this ratio back to 70-30,” explains Sundaram.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.