📈 Bull Market
Invested—
Value—
Return—
Units—
📉 Bear Market
Invested—
Value—
Return—
Units—
Invested vs Portfolio Value
📈 Bull Market — How SIPs behave
- NAV rises steadily — each instalment buys fewer units than the last, but at higher prices
- Portfolio value compounds quickly — existing units appreciate as NAV climbs month after month
- Returns are front-loaded — early instalments benefit the most from the long upward run
- Rupee-cost averaging works modestly — you buy more at dips, less at peaks, smoothing entry
- Best strategy: stay invested and let compounding do the work — avoid the urge to withdraw early
📉 Bear Market — How SIPs behave
- NAV falls or stays flat — each instalment buys more units than the last at lower prices
- Unit accumulation accelerates — the same ₹ amount accumulates a larger and larger unit base
- Short-term value looks stagnant — portfolio value lags invested amount during the downturn
- Recovery amplifies gains — when NAV rebounds, the extra units accumulated magnify the upside sharply
- Best strategy: do not stop or pause — a bear market is precisely when SIPs work hardest for you
💡 Key Insight:
In a bear market, SIP benefits from rupee-cost averaging — you accumulate more units at lower NAVs.
When markets recover, those extra units amplify your gains significantly.
Staying invested through the downturn is precisely what makes the difference.