Should you stop your SIP when markets fall 20%?
Last reviewed: 14 Oct 2026 · Noema Research · 7 min read
Not if your goal is 5 or more years away, your emergency fund is in place and your income is steady. In the four falls of 20% or more since 2008, the Nifty 50 took about 8 to 24 months from its low to get back to its previous peak, and a SIP kept going through each fall was worth more than the amount put in once the index recovered. Pausing is the right call if your goal is under 3 years away, your income has stopped, or you have no emergency fund. Past recoveries don't promise future ones. These are estimates from past data, not predictions.
Check your SIP
When the market falls, the question isn't where it goes next. It's whether your own plan can wait. Answer four questions.
Index data: NSE, Nifty 50, to October 2026
Recommendation 5
Keep the SIP going. Your goal is 10 years away. In past falls of 20% or more, the Nifty 50 took about 8 to 24 months from its low to regain its previous peak. Past recoveries don't promise future ones.
Estimates from past data, not predictions.
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What past falls looked like
A 20% fall feels like it may never end. In past falls, the Nifty 50 took about 8 to 24 months from its low to get back to its previous peak.
| Peak close | Low close | Fall | Peak to low | Low back to previous peak |
|---|---|---|---|---|
| 8 Jan 2008: 6,287.85 | 27 Oct 2008: 2,524.20 | about 60% | about 10 months | about 24 months (5 Nov 2010) |
| 5 Nov 2010: 6,312.45 | 20 Dec 2011: 4,544.20 | about 28% | about 14 months | about 22 months (3 Nov 2013) |
| 3 Mar 2015: 8,996.25 | 25 Feb 2016: 6,970.60 | about 23% | about 12 months | about 13 months (14 Mar 2017) |
| 14 Jan 2020: 12,362.30 | 23 Mar 2020: 7,610.25 | about 38% | about 2 months | about 8 months (9 Nov 2020) |
Index data checked 14 Oct 2026, NSE · Page updated 14 Oct 2026
From peak to recovery, these took about 10 to 36 months. Past recoveries don't promise future ones; a future fall could be deeper or last longer.
What a SIP kept through a fall did
Stopping feels like it limits the damage. In these falls, instalments made near the low bought units at lower prices.
₹10,000 a month in the Nifty 50 Total Returns Index, starting in each peak month. Illustrative, index-based, before costs and tax.
| SIP started | Value at the low | Value when the index regained its peak | SIP value back above amount put in |
|---|---|---|---|
| Jan 2008 | ₹54,100 on ₹1,00,000 put in | ₹5,17,000 on ₹3,50,000 | Jun 2009, after 17 months |
| Nov 2010 | ₹1,16,200 on ₹1,40,000 | ₹4,31,200 on ₹3,70,000 | Oct 2012, after 23 months |
| Mar 2015 | ₹1,02,500 on ₹1,20,000 | ₹2,79,100 on ₹2,50,000 | Jun 2016, after 15 months |
| Jan 2020 | ₹19,700 on ₹30,000 | ₹1,29,900 on ₹1,10,000 | Jul 2020, after 6 months |
Past falls, not a promise about the next one.
The 2008 and 2010 SIPs spent nearly two years below the amount put in. The 2020 SIP took 6 months. Keeping a SIP going works only if you can wait that long without needing the money.
When to keep your SIP going
The market's next move is unknowable. Your own timeline isn't.
Keep the SIP when the goal is 5 or more years away, your emergency fund covers 3 to 6 months of expenses and your income is steady. For goals 3 to 5 years away, it's a judgment call: keep investing, but move money towards debt gradually as the date nears. Read how to split equity and debt by goal. Once the SIP is steady, see how much to raise it each year.
When pausing is the right call
Keeping a SIP going is advice for people who can wait. Not everyone can.
Pause, or move money out of equity, if any of these is true: the goal is under 3 years away, you've lost your job or your income has fallen, or you have no emergency fund. Selling then can be the right move, because you need the money on a date a recovery may not meet. Start with your emergency fund.
What not to do
Most of the harm in a fall comes from what people do, not from the fall itself.
- Stopping at the low: the units bought near the low did the most in the recovery.
- Switching long-term SIP money to FDs after a fall, which locks in the loss.
- Waiting for the market to settle before restarting. No one knows the low until well after it.
Two savers in the same fall
The same fall can call for opposite decisions.
Ananya, 34, in Pune, has a ₹10,000 SIP for her daughter's education 12 years away, six months of expenses set aside and a steady salary. Her portfolio is down 20%. She keeps the SIP: she has more than 10 years, and in past falls the SIP got back above the amount put in within 6 to 23 months. Rohit, 41, in Kolkata, needs ₹8,00,000 for a home down payment in 2 years and has just lost his job. He pauses the SIP and moves the down-payment money out of equity, because it can't wait for a recovery.
Common mistakes
Most decisions in a fall go wrong by starting from the market, not the goal.
- Judging the SIP by its value at the low instead of by the goal date.
- Keeping money for a goal under 3 years away in equity.
- Investing in a SIP with no emergency fund behind it.
- Stopping the SIP and forgetting to restart it.
- Putting in a large lump sum to make up losses, beyond what the plan allows.
- Reading daily market news as advice for a 10-year goal.
FAQ
Should I stop my SIP when the market falls?+
Not if your goal is 5 or more years away, your emergency fund is in place and your income is steady. Pause if the goal is under 3 years away, your income has stopped, or you have no emergency fund.
How long did the Nifty 50 take to recover from past falls?+
In the four falls of 20% or more since 2008, it took about 8 to 24 months from the low to close above the previous peak, and about 10 to 36 months from the peak. Past recoveries don't promise future ones.
What happened to a SIP started at the 2008 peak?+
₹10,000 a month in the Nifty 50 Total Returns Index from January 2008 was worth about ₹54,100 on ₹1,00,000 put in at the October 2008 low. It got back above the amount put in by June 2009, and was worth about ₹5,17,000 on ₹3,50,000 when the index regained its peak in November 2010. Illustrative, before costs and tax.
Was the 2022 fall one of these?+
No. From October 2021 to June 2022 the Nifty 50 fell about 17%, less than 20%.
Should I move my SIP money to an FD after a fall?+
For a goal under 3 years away, moving towards fixed income can be right. For long-term goals, switching after a fall turns a fall in value into a realised loss.
Should I invest more when the market falls?+
Only if your emergency fund is full and the extra money is meant for goals 5 or more years away. Nothing says the market won't fall further first.
What if I've lost my job?+
Pause the SIP and protect your cash. Restart once your income is steady and your emergency fund is rebuilt.
What if my goal is 3 to 5 years away?+
Keep investing, but move money towards debt gradually as the date nears, rather than all at once in a fall.
Related answers
- How Should You Split Equity and Debt for Each Goal?
Split by how many years away each goal is, not by your age. A house 8 years away can sit near 70% equity-oriented; a fee due in 2 years belongs mostly in lower-risk debt.
- How Much Emergency Fund Do You Need in India?
Keep 3 to 12 months of essential spending, not salary. On ₹50,000 of monthly essentials, 6 months is ₹3 lakh, built in a year at ₹25,000 a month.
- How Much Should You Raise Your SIP Each Year?
Work back from your goal. To reach ₹1 crore in 15 years from a ₹15,000 SIP, raise it about 6.5% a year if returns average 12%, or about 9% if they average 10%.
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