Systematic Investment Plan Good for You ? NIFTY

What is the benefits of systematic investment plan?

Nowadays you're getting good returns. You can understand all the logical things being emotion-free. You can check out that returns were negative or 0. DSP equity fund whose name is now DSP Flexi fund, its return was -5%

You can also know in this post:

  • Is SIP better than FD?
  • Which systematic investment plan is best?
  • How do I start a systematic investment plan?
  • Is systematic investment plan a good idea?

Best fund of that time,  DSP MIDCAP FUND was at -7% ICICI MULTI CAP FUND was not even 1%. You can check out others. If you stopped your SIP or  redeemed it after 3 years, You booked your temporary negative returns.

You have gone home with negative returns. What happened? If you had continued that SIP till now, you can check out this data. I  have taken figures up to MAY 2020.

When NIFTY was not even above 10,000. You check out returns of that time. Genuinely, if these were active till now, all would have returned above 17%. Why did I take May's data?  Because you'll say, what's the difference between you and them if you show good figures of recent times. That's why I took nominal figures.

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I took March's figure  when the market was down and today's figure too,  where everything is good. May can be said to be neutral. We can  say everything was in trouble in May. Nifty was below 10,000 in May.  You can check that data here.

It's not the only one. There'll be more examples for you ahead. If someone had started SIP in 2008. Next year he had negative returns. It was from -40% to -60%.  You can check it out here.

Systematic investment Plan India

What happened in 3 years? Every good  fund SIP had a return of 20-25% In 10 years it was 15-17%. Even after knowing the pain in the starting of 2008. 1st year you'll have great pain. It's not only about 2008. It was a time of crisis that's  why. Let's take other examples.

If someone started SIP in NOV 2010. Returns of 1st year were negative. You can check it out here.  It was from -4% to -10%. But, What happened after?  Everything is just in front of you. If SIP was continued for the next 10  years then returns reached up to 17%.

If someone invested in JAN 2015.  1-year return was 10-15% down. If he kept investing for 3-5 years. Returns again reached above 15%. If I talk about recent times. If someone started SIP in 2018. Its return in 2020, even till JUNE was sure negative or low.

Meaning? You should not invest in SIP by looking at the last 1 years' returns. SIP is not for you. SIP must be planned for a minimum of 5 years. I am not telling you that you'll get good returns after 5 years. It's minimum. If your time duration is 5,10,15, or 20 years,

Then SIP is the best option for you. Here, I am talking about equity SIP. I'll get a question here, Anant, you are in connection with the market so much. You main Anant Ka Funda daily. You make post and track the market daily.

Which is the best systematic investment plan in India?

We know that you know  about the market. When you knew that market  was at its top in 2008. Or whenever it was  at top 2010 or 2015. and SIP returns next year will be  low. Then why did you make us do SIP?

You should have said that as  you know about the market. You should have stopped us. Don't do SIP. Pause now and do it next year. Why didn't you stop us?  Why did you say to do SIP?

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