Batting Through Volatility with Mutual Funds
By Akhil Chugh
Date June 01, 2025
In both cricket and investing, there are moments when the game gets tough — a sudden spell of swing bowling or a sharp dip in the stock market. But in either case, the answer is not to panic or abandon your strategy. You don’t change the bat just because the bowler is fast. And in investing, you don’t change your mutual fund strategy just because the market gets volatile.
Let’s explore how this powerful analogy applies to SIPs, market volatility, and your long-term financial goals.
Market Volatility = The Fast Bowler’s Spell
Picture this: You’re at the crease and a world-class fast bowler is running in. The ball is swinging. The pitch is uncertain. It’s tempting to change your bat, your gloves, even your game plan. But seasoned cricketers know that technique, temperament, and trust in your gear are more valuable than a last-minute equipment change.
In the world of investing:
- The fast bowler = market corrections or geopolitical uncertainty
- The swinging ball = sudden interest rate hikes or inflation shocks
- The panic = investors halting SIPs or exiting mutual funds
But switching your investment strategy during turbulent times often leads to missed opportunities and broken compounding cycles. The key lesson is don’t let short-term volatility dictate long-term decisions.
SIPs: The Defensive Technique That Builds a Big Innings
Your SIP is like your favourite bat — it’s built for consistency.
Here’s how SIPs help you navigate volatility:
Market ups and downs are inevitable. But SIPs make volatility work in your favour through rupee cost averaging and power of compounding to achieve your long-term financial goals.
Don’t Commit the Common Investor’s Mistake
Many investors react to volatility by:
- Stopping SIPs temporarily
- Withdrawing from equity funds
- Chasing safer instruments with lower returns
This is the equivalent of a batsman switching to a tennis racquet when faced with a fast spell — absurd, and often self-defeating.
Let’s consider this example to understand it better:
Mr. Dravid vs. Mr. Pant
- Dravid starts a SIP of INR 50,000/month in an equity mutual fund with a CAGR of 12%, and continues without interruption for 10 years.
- Pant starts the same SIP but pauses it for 2 years (Year 4 to Year 5) during market uncertainty, and resumes afterward.
Reason for the Loss:
- Lost Compounding: Pausing SIPs breaks the compounding cycle and reduces potential corpus.
- Missed Market Recoveries: SIPs during down markets buy more units at lower prices—key to long-term gains.
- Reduced Rupee Cost Averaging: Skipping investments limits your ability to average out cost across market cycles.
Investing for Long-Term Goals: Think Beyond the Current Over
Cricketers spend years perfecting their stance, footwork, and shots — they don’t reinvent the wheel for every tough over. Similarly, investors:
- Should trust their financial planning framework
- Rely on goal-based investing
- Avoid knee-jerk reactions to market movements
Changing funds frequently or halting investments often leads to poor timing, unnecessary costs, and emotional decision-making.
Whether you’re planning for:
- Your child’s education in 10-15 years,
- Your own retirement 20 years from now,
- Or a dream home a decade away, you can’t afford to change your investment strategy based on short-term market movements.
So, stay at the crease and keep playing your shots — calmly, regularly, and with conviction!
Conclusion: Stay Invested
Every cricketer faces testing spells. Every investor faces volatility. But you don’t change the bat just because the bowler is fast — you trust your technique and wait for your moment.
In investing, your SIP is that technique. Mutual funds are your gear. And your financial goals are your scoreboard.
So stay focused, stay invested — and let time and discipline do the scoring.
At Net Brokers, we encourage you to remain focused on your financial goals and avoid reactive decisions based on short-term events.
If you have concerns or need to discuss your investment strategy, please reach out to us.
- Need a portfolio review or reassurance about your SIPs?
We’re just a call away. Let’s plan your future, not panic about the present.
- Want to track your investments on the go?
Download our Mutual Fund App today and manage your portfolio anytime, anywhere — smarter investing is just a tap away!
Stay Calm. Stay Invested!