When markets remain flat for extended periods, SIP outcomes can initially seem underwhelming. Portfolio values seem to stagnate, and it often raises doubts about whether continuing makes sense. However, this phase plays a very specific role in long-term wealth creation. When running long-term scenarios through a SIP calculator, it becomes clear that flat markets change when returns appear, not whether they appear.
In sideways phases, SIPs benefit from rupee cost averaging. Each instalment buys more units during dips and fewer during brief rallies, gradually lowering the average cost. While index levels may not move much, unit accumulation continues quietly in the background.
The real impact becomes visible once markets exit the flat phase. A larger unit base begins compounding together, and returns can improve faster than expected. Investors who pause SIPs during stagnation usually miss this payoff, while those who stay consistent enter the next upcycle with a clear advantage. Platforms like Rupeezy helped me understand about SIP and other investing ideas.
Flat markets test patience, not the SIP structure itself.