SIP vs Panic Selling

Education-only simulator to visualize the post-tax cost of stopping SIPs during drawdowns. It’s not a forecast.

1) Set your plan
Monthly SIP + time horizon
2) Pick a crash
2008 / 2020 / 2022-style preset
3) Compare behavior
Discipline vs panic rules (post-tax)

Go deeper

Want to run these scenarios with your own numbers? Export and keep the results.

SIP vs Panic Selling Scenario Workbook (Excel + PDF) →

Educational content only — not investment advice.

SIP vs Panic SellingEducation-only simulator
⚠️ Educational tool for learning only — not investment advice. Past performance ≠ future results. Consult your financial advisor before investing.

Which one describes you best?

Start simple, then open more detail if you want.

💡 Not sure? Learning Mode is the default and works for most people.

What Happens If You Stop SIP During a Market Crash?

Compare calm investing vs panic-selling, and see the post-tax cost — month by month.

2
3
4
Step 2 of 4Set your SIP
LEARNING MODE
A guided crash decision, with real numbers
You’ll face a simulated ~35% crash around Year ~2.5. Choose your behavior and see the estimated cost.
Primary Truth
You could lose ₹5.37L

Same market path. Different behavior.

Stopping your SIP around a ~30% drawdown cuts off the crash buying window and the recovery compounding.

What this loss could have bought
1 homes in a tier-2 city
1 luxury family cars
1 international vacations
1 years of premium education
Illustrative comparisons to build intuition (not actual prices).

Education-only. Simplified market + tax model.

📊 Assumptions used in this simulation(education-only)
📉 Crash / Recovery Path
Crash: 35% over ~6 months starting ~Month 30 (≈ Year 2.5). Recovery: +45% over ~12 months. Secondary correction: 20% over ~3 months around Month 78.
⚠️ Panic Rule
Stops SIP contributions once the market is ~30% down from the last peak (a drawdown trigger). After stopping, contributions are modeled as going to cash at ~6% annual.
🧾 Tax (Simplified)
Equity MF style, conservative gains tax approximation (30% on gains) + 4% cess; no surcharge in Beginner mode. This is a teaching model and may differ from your actual taxes.
💡 Want to change crash presets, tax profile, or see month-by-month charts? Use Advanced Mode.
How much & how long?
Optional — adjust to match your situation.
/mo
Total invested: ₹12,00,000
10 years
1 year30 years
Quick scenarios

Your results (after tax)

✅ If you stay calm & keep investing

₹21.29L

Final wealth estimate

⚠️ If you stop sip (fear takes over)

₹15.92L

Final wealth estimate

You could lose: ₹5.37L (25%)

Why does panic cost so much?

  • During crashes, prices are low — continuing SIP buys more units.
  • When markets recover, those extra units compound your recovery gains.
  • Stopping SIP cuts off the cheapest buying period and the rebound.
This is for educational purposes only. It does not constitute investment, tax, or legal advice.
SIP vs Panic Selling Simulator | BM Wealth