Mutual Fund: It is decided by the date, whether the return will increase or decrease, listen from the expert, the right way and time, whether the SIP date in mutual fund decides more or less return? Can you make good returns by investing on a particular date of the month or is it better to fix the same time every month for investment. Let’s understand from experts.
Mutual Fund SIP: Does the date of SIP in Mutual Fund decide the higher or lower returns? Can you make good returns by investing on a particular date of the month or is it better to fix the same time every month for investment. In all such studies, this information has come to the fore that there is no significant difference in the returns of SIP on different dates, especially in the long term, especially 8 years, 10 years. Experts believe that in SIP returns, it does not matter which day you are choosing. You can invest whenever you have cash flow.
SIP: When to invest
Pankaj Mathpal, MD, Optima Money says, if SIP is done on different dates, then there is no significant difference in the returns. Whether you do it on 1st of the month, or in the middle of the month or at the end, there is no significant change in SIP returns.
Pankaj Mathpal says, the best day to do SIP is the day money is available in your account. If your salary comes on the 1st, then keep the date of SIP 1 or 2. If your salary comes after a few days, then decide accordingly. But, it does not matter which day you are choosing. This information has also come out in the study that it was seen on different dates that even if you invested in the index, there was no difference in the returns.
Harshvardhan Rungta, CFP, Rungta Securities says, first of all, let us understand why we do SIP. It has 2. First, when you get money every month from salary or whatever income you have. That’s why you invest every month. Another reason to do SIP is that the market remains volatile, sometimes up and sometimes down. We do not know what will happen after we invest. Will the market fall or will it rise immediately? In such a situation, if we look at the time frame of 8, 10 years continuously, then we do not know when the market will increase or when it will decrease. When should we invest money, so that we get the benefit of the lower level? All these assessments are not possible. That’s why we do SIP.
Rungta says, talking about the research report, we do SIP on any date of the month and keep it for 8 years to 10 years, then the difference in returns is almost negligible. That’s why it is better that whenever you have cash flow, SIP should be done from long term perspective.
What time right?
| SIP date | Returns (10 Years) |
| 1st | 15.74% |
| 10 th | 15.66% |
| 15th | 15.71% |
| 28th | 15.71% |
(Source-Whiteoak Capital)
SIP- Which installment is right?
Pankaj Mathpal says, if we talk about daily, weekly or monthly SIP, then we can get the benefit of rupee cost averaging. In such a situation, investors do such that if they have to do SIP of Rs 10,000 every month, then if they do SIP of Rs 2,500 every week, then its result will be slightly better. That is, such investors who want to invest a fixed amount every month, then it would be better for them to invest weekly. As far as the daily SIP is concerned, it is not that important. There will be no special benefit from this. But if it is done in 4 or 6 instalments, then there will be a slight advantage of rupee cast averaging.
Harshvardhan says, there is no significant difference in the returns that come in the end in the long term of doing daily, weekly or monthly SIP. If investors want long-term wealth creation, then keeping in mind their convenience, accounting and frequent bank account entry (debit) is a better option to deposit money in a single day.
| SIP installment | Amount | Return | total value |
| deli | ₹1000 | 14.1% | ₹6.10 crore |
| weekly | ₹4756 | 14.1% | ₹6.12 crore |
| monthly | ₹20,677 | 14.1% | ₹6.13 crore |
(Tension-26 Years, Source-Whiteoak Capital)
Hit SIP over long term
Pankaj Mathpal says, if we talk about wealth creation, then we talk about equity mutual funds. Because SIP can also be done in debt and hybrid mutual funds. Equity is a class where wealth creation can happen in the long run. As far as the long term is concerned, see also the report of Whiteock, if you do SIP for 8 years or more, then the possibility of negative returns ends. Hence the returns will be better in the long run. He says that the horizon of SIP should be taken for 10 years or more.
Rungta says, if you understand the investor’s mindset, they generally believe that there can be losses. Whiteock’s data shows that if you do SIP for more than 8 years, then the probability of loss becomes almost zero. In such a situation, an outlook of 8 years should be kept for the long term.
| SIP Tenure | maximum return | minimum return | average return |
| 3 year | 52.4% | -36.2% | 13% |
| 5 years | 50% | -10.5% | 15.2% |
| 8 years | 40.8% | 1.4% | 16.2% |
| 10 years | 29.6% | 4.6% | 15.7% |
(Source-Whiteoak Capital)
Benefits of SIP
- Regular investment beneficial in long term
- Beneficial given the ups and downs of the market
- Investing in SIP keeps the risk low
- SIP gives the benefit of compounding
- Better to achieve SIP goals
- Helpful in portfolio diversification
- You can also increase the SIP amount in future
- SIP works on rupee cost averaging
- If you maintain investment then there is not much effect of decline
- You benefit by maintaining a consistent investment
- Buying more units when the unit price is lower
- Purchase of fewer units when the unit price is high
Wealth Creation through SIP
| Duration | SIP | Return | value |
| 15 years | ₹10,000 | 14% | ₹61.3 lakh |
| 10 years | ₹10,000 | 14% | ₹26.2 lakh |
| 8 years | ₹10,000 | 14% | ₹17.7 Lakh |
| 5 years | ₹10,000 | 14% | ₹8.7 Lakh |
