‘You are better off…’: Zerodha’s Nithin Kamath shares SIP mantra amidst stock market crash doom and gloom – The Times of India

Stock market crash: Indian equity markets have been sliding and how! BSE Sensex and Nifty50 have corrected around 14-15% from their peaks in September and in the current uncertain global environment, there is no clarity on when this bear phase of the stock market will end. So what should investors do in such a scenario? Is it time to stop your Systematic Investment Plans (SIPs)?
Nithin Kamath, the founder and CEO of Zerodha says it’s ‘wrong’ to stop SIPs. “You are better off just investing every month and doing something useful in life than getting carried away by the doom and gloom,” Kamath said in a post on X (formerly Twitter).
According to Kamath, the current market downturn represents the first significant correction for post-pandemic investors. Market fluctuations are natural, and considering the substantial upswing since late 2020, this decline was expected, he said.
Reports suggest an increase in investors discontinuing their SIPs, which is counterproductive. SIPs enable cost averaging across various market phases, he said.
“You averaged on your way up from 2021; now, you get to average on the way down. In 2020, large, mid, and small caps fell by 25-40% but then rose by 200-400%. If you had panicked, you would have missed the rebound. As long as you invest regularly in the right funds, diversify, and stay disciplined, your chances of long-term success are high,” Kamath’s post reads.
The Zerodha CEO also says It is crucial to avoid borrowing for investments despite numerous businesses promoting such practices. Whilst market direction remains unpredictable for everyone, panic-driven decisions, particularly when involving borrowed funds, often lead to poor outcomes, he notes.
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Foreign Portfolio Investors withdrew Rs 34,574 crore from Indian equity markets during February, contributing to a substantial outflow of Rs 1.12 lakh crore in the initial two months of 2025. This significant withdrawal occurred amidst heightened global trade conflicts and apprehensions regarding corporate profit expansion.
The depositories’ data revealed that FPIs divested Indian equity holdings worth Rs 34,574 crore in February. This followed a considerable net withdrawal of Rs 78,027 crore throughout January.
These consecutive withdrawals have resulted in a cumulative FPI outflow of Rs 1,12,601 crore in 2025 thus far, as evidenced by the depositories’ records.