While starting a monthly mutual fund SIP, a lot of new investors often try to time the market under the impression that investing on a particular date of the month can yield better returns.
On one hand, some mutual fund investors prefer their SIPs at the beginning of the month, others like it at the end. There are some who take the middle path by starting their SIP from the middle of the month.
There are others who try to act smart by timing it around the last Thursday of the month because of higher volatility due to F&O expiry. The ones who are not sure about any fixed day often try to split it into multiple date SIPs.
So which is the best date to select for monthly SIP to get more bang for every buck? Well, data shows you can safely select any blind date!
An analysis by White Oak Capital Mutual Fund using last 26 years’ data from the widely tracked Sensex TRI reveals no meaningful difference between the average return of different dates’ 10 years SIPs.
The 10-year average SIP return on daily rolling basis for the 1st of the month was 15.8%. It decreased marginally to 15.71% when the date changed to 8th, 15.75% on the 15th and 15.77% on 28th.
“The best SIP date in our view, is when an investor usually receives money in his/her bank account (for example, salary credit day),” White Oak said while recalling the investing mantra of why it is about the time spent in the market and not about timing the market.
With the growing financialisation of household savings in India, the monthly SIP contribution has been on a steady rise over the last few years. AMFI data shows that the monthly SIP contribution has gone up multi-fold from Rs 3,698 crore in Sep 2016 to Rs 12,976 crore last month.
“SIP AUM surged significantly by 15.3% quarterly to Rs 6.35 lakh crore at the end of Q2FY23. It is now at 16.5% of total industry assets as against 15.5% in the previous quarter,” according to an
report.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
