Many mutual fund investors prefer to start their SIPs at the beginning of the month, often right after receiving their salaries, believing it’s a disciplined and sensible approach. However, a section of investors believes that choosing a date in the middle or end of the month—especially on volatile days like the last Thursday (F&O expiry)—might result in better returns.
But are these beliefs backed by data, or are they just market myths? Does your SIP date actually affect your overall returns?
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ETMutualFunds did an analysis of SIP performance for a period of 10 years. We looked at the SIP return for a period of 10 years from March 2015 to March, 2025. We considered all the dates. We considered a large cap fund for the study.
The example showed that there was no real difference in SIP returns made on any date of the month. The SIP returns for the scheme ranged between 13.07% to 13.26%. The present value of Rs 1,000 invested monthly in the fund ranged between Rs 2.35 lakh and Rs 2.38 lakh.
As the data shows, SIP returns don’t vary significantly based on the date chosen—whether it’s the beginning, middle, or end of the month. The difference in returns is minimal.
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Ultimately, your SIP date should be based on convenience and financial discipline, not the pursuit of higher returns. Aligning your SIP with your salary credit date ensures consistent saving and investing. Waiting until the end of the month to invest what’s left often leads to lower contributions—and a smaller corpus in the long run.
What matters most is selecting the right mutual fund schemes that align with your goals, investment horizon, and risk profile. Set a clear target corpus and calculate how much you need to invest regularly to reach it.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
But are these beliefs backed by data, or are they just market myths? Does your SIP date actually affect your overall returns?
Also Read | NFO Insight: Motilal Oswal Infrastructure Fund opens. Time to add to your MF mix?
ETMutualFunds did an analysis of SIP performance for a period of 10 years. We looked at the SIP return for a period of 10 years from March 2015 to March, 2025. We considered all the dates. We considered a large cap fund for the study.
The example showed that there was no real difference in SIP returns made on any date of the month. The SIP returns for the scheme ranged between 13.07% to 13.26%. The present value of Rs 1,000 invested monthly in the fund ranged between Rs 2.35 lakh and Rs 2.38 lakh.
As the data shows, SIP returns don’t vary significantly based on the date chosen—whether it’s the beginning, middle, or end of the month. The difference in returns is minimal.
Also Read | 44 equity mutual funds offer negative returns in one year, lose up to 15%
Ultimately, your SIP date should be based on convenience and financial discipline, not the pursuit of higher returns. Aligning your SIP with your salary credit date ensures consistent saving and investing. Waiting until the end of the month to invest what’s left often leads to lower contributions—and a smaller corpus in the long run.
What matters most is selecting the right mutual fund schemes that align with your goals, investment horizon, and risk profile. Set a clear target corpus and calculate how much you need to invest regularly to reach it.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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