Which is the Best Date for SIP?

Which is the Best Date for SIP?

Over the last few years, Systematic Investment Plan (SIP) has become a household name. Once the amount and time frame to invest has bee decided by the investor, the next important question comes to his mind - Which is the best date for SIP, so that he can maximize the returns.

Recently WhiteOak Capital Mutual Fund conducted a study, to address this important question.

Best SIP Date - Start of the month, End of the month - during Derivative expiry where markets tend to be volatile or Middle of the month? Or splitting the SIP amount into multiple dates?

An historical study of the BSE Sensex data since 1996 to 2023, suggests that there is no meaningful difference between the average returns of different dates.

image credit WhiteOak Capital

Another study on on SIP frequency shows that, whether it is Daily, Weekly or Monthly the returns are similar.

In short, it doesn't matter which date or frequency is selected, SIP which is started early, invested regularly and invested for long term takes you to the destination or your goal.

NSE Trading Holidays 2024

Trading holidays for the calendar year 2024. The National Stock Exchange of India (NSE) has notified trading holidays for the calendar year 2024 as below: Muhurat Trading: Timings of Muhurat Trading shall be notified subsequently.

Historical BSE Sensex returns - updated 2013

We have already seen the historical returns of the BSE Sensex, which indicated an average return of about 20% per year, despite many yearly returns varying from -20% to +60%. The following table shows BSE Sensex historical data - open, close and the yearly returns of the sensex from 2000 to 2012. There are some interesting points to note from the above table. Post 2008 crash of about 50% and 2011 negative returns of 24%, markets have given positive returns of 81% and 25%. Also the average returns for the past years is about 20% despite the markets being down 24%. The lesson is pretty much clear - long term investing pays and one need not bother too much about the ups and downs of the markets. During the past few years, the returns from investing in individual stocks have been varied. Despite markets being at 2 year highs, only a few stocks are at similar highs, while most of them are still languishing well below their historical highs and are down anywhere between 8

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