Lesson 2 of 3 · 6 min
The crash test
A falling market is where SIPs get stopped, and stopping is what turns the averaging arithmetic upside down: buy high, skip the lows, resume buying high.
Here is the pattern that repeats every cycle: markets fall, statements turn red, and a wave of investors stop their SIPs — then restart months later, after prices have recovered.
Look at what that sequence actually did: it bought at high prices, skipped the low ones, and resumed buying high. The exact opposite of what averaging is for.
Sort it
1 / 4
A crash is on. Which reactions are consistent with the SIP method, and which quietly break it?
Pause the SIP until things "look safer"
None of this tells you what to do with your own money — that depends on things only you know, like when you need it.
It describes what the arithmetic does: a SIP stopped in every downturn ends up having bought mostly at high prices, and the averaging benefit was surrendered exactly when it was largest.
Quick check
An investor ran a SIP from 2020 to 2025 but paused it during every falling stretch and resumed after recoveries. What did the pausing do?
Check yourself
1 / 3
Kabir asks
Markets fall, statements turn red, a wave of investors stop their SIPs, then restart after prices recover. What did that sequence actually do?
Done reading?
Saved in this browser.