# Why investors pause SIPs when markets crash: study 2026-08-22T20:56:52+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet A behavioural finance analysis explains why investors often stop systematic investment plans (SIPs) during market downturns, despite knowing that staying invested is the right strategy. Ripsy Bondia, assistant professor at IMI Delhi, categorises investing in SIPs as a decision that is intellectually simple but emotionally difficult, placing it in the same quadrant as eating healthily or exercising regularly. During the 2008-09 financial crisis, broader indices fell 60-65%, and equity mutual-fund flows swung from net inflows of Rs 12,700 crore in January 2008 to net outflows of Rs 2,100 crore in December 2009. More recently, despite no major crash and near-zero returns over two years, monthly equity mutual fund inflows fell by nearly 30% to Rs 29,000 crore in June 2026 from Rs 40,600 crore in June 2024. The analysis, published by Livemint, attributes this behaviour to emotional factors such as fear of portfolio loss, anxiety amplified by social media and news headlines, and concerns about job security during crises. The key to overcoming this, according to the article, is distinguishing between decisions avoided because they are financially unsound versus those avoided simply because they are emotionally uncomfortable. ## Indian Opinion Analysis The 2008-09 crisis and the 2020 pandemic crash show the same pattern: SIP stoppages peak when fear is highest, not when logic dictates. For a typical retail investor with a Rs 10,000 monthly SIP, pausing during a 20% dip can cost lakhs in missed compounding over 20 years. The real challenge is not financial literacy but behavioural design: auto-debit mandates, lock-in features or default continuation clauses could help. The next signal to watch is whether monthly SIP flows recover or stay below Rs 30,000 crore in coming months, which would indicate whether the current cautious phase is deepening. ## Coverage - livemint.com Explains investor behaviour with data and academic framing, no advocacy or government angle. This story was synthesised by AI from the source linked above. Tags: IMI Delhi, mutual funds, Ripsy Bondia, Sensex, SIP Canonical: https://indianopinion.org/why-investors-pause-sips-when-markets-crash-study/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/why-investors-pause-sips-when-markets-crash-study/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/