SIP Investment: 30 years data revealed, know on which date doing SIP will give you huge returns

SIP Investment Best Date For Mutual Fund Returns: This question definitely comes in the mind of every investor who invests money in mutual funds through SIP, which date of the month will be most beneficial to invest. Is it right to deduct money from 1st to 5th as soon as the salary comes or is it better to invest on 25th when the market falls? Answers to all such questions have now been found through historical data. This new research is going to be of great help to the people who decide the date of investment by looking at the ups and downs of the market.

A new and very historic research by WhiteOak Capital Mutual Fund has completely broken all the illusions of investors. This fund house has done a very in-depth analysis of the historical Sensex data of 30 years from 1993 till now. The results that have emerged from these 30 years of historical data are very shocking for investors. With this, people looking for the magic date of investment will now know the truth.

30 years historical data

Generally, investors feel that due to selling or fluctuations in the market at the end of the month, NAV gets cheaper which leads to higher profits. But this 30 years of historical data tells a completely different and new story about SIP returns. According to research, in the last 30 years, based on 10-year rolling returns, there was no major difference in the average returns by investing on different dates every month.

Great returns on different dates

According to the data, the average return on investment between the beginning of the month i.e. 1st to 5th has been around 15.22 percent. Whereas, if SIP is done in the middle of the month i.e. between 12th and 15th, investors have got an average return of about 15.26 percent. Apart from this, those who did SIP between the end of the month i.e. 25th to 28th have also got a very good return of about 15.24 percent.

Time of investment is king, not date.

It is completely clear from these 30 years of data that the difference in returns between the beginning, middle or end dates of the month is very small. This difference is just 0.02 percent to 0.04 percent, which is considered completely negligible in a long-term portfolio. When you invest for a long period like 10 or 20 years, all the fluctuations are automatically averaged out through cost averaging, the basic principle of mutual funds.

Which date is best for you?

Financial experts clearly believe that the best and best date for SIP is the one which suits your financial situation exactly. Choosing any date within 3 to 5 days of crediting the salary account is considered best for investment. With this, you invest your money in a disciplined manner even before it is spent and your future remains completely secure.

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Right time for business people

Apart from the salary earners, important advice has also been given for those who run their own big business regarding the date of SIP. Business people can choose any date of the month when the cash flow in their business is best and highest. Trying to time the market is pointless because the basic principle of cost averaging always works.