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Jun 06, 2013, 10.42 AM | Source: Moneycontrol.com

Which date to choose for equity mutual fund SIP?

Many a time investors come to us asking which is the right date for SIP investment. They also want to know whether splitting SIPs into two dates make any difference to their returns. Read this space to know the appropriate date to choose for SIP investment.

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Which date to choose for equity mutual fund SIP?

Many a time investors come to us asking which is the right date for SIP investment. They also want to know whether splitting SIPs into two dates make any difference to their returns. Read this space to know the appropriate date to choose for SIP investment.

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Kripananda Chidambaram (more)

Director, Fintotal.com | Capital Expertise: Insurance ,Tax ,NRI ,Mutual Funds

Many a time investors come to us asking which is the right date for SIP investment. They also want to know whether splitting SIPs into two dates make any difference to their returns.

We did a research to find out whether date matter in SIPs.

We took HDFC Top 200 as a sample fund. Assume one has been investing Rs 1000 per month for a period of 10 years (120 months) from 2003 to 2013 in different dates 1, 5, 10, 15, 20 and 25.

We also split the Rs 1000 between two dates in a month.

Here it goes:

Date Rate Values
1st Of month 

19.30%

331698

5th of month

19.36%

332901

10th of month

19.82%

340950

15th of month

19.52%

335719

20th of month

18.77%

322362

25th of month

18.42%

316287

1st & 20th

19.03%

327030

5th & 25th

18.72%

327030

1st & 15th

19.41%

327030

5th & 20th

19.07%

327631

25th & 10th

19.12%

328619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Observation and conclusion:

SIP on 10th of every month works the best compared to other dates. The splitting of dates is a bad option and in fact brings your overall returns down. We suggest that you choose a date that is closer to your salaries. It should not happen that by the time SIP hits your bank account you have insufficient balance.

As far as possible let the SIP hit your bank account in the period between 5 to 10 of every month.

Few of other funds:

Fund   1st   5th   7th   10th   14th   15th   20th   21st   25th   28th
Franklin India Bluechip Fund

17.06%

 

18.07%

17.92%

 

 

17.64%

 

17.69%

 
HDFC Equity Fund

18.81%

20.45%

 

20.08%

 

19.89%

19.98%

 

19.56%

 
DSP BlackRock Top 100 Equity

17.51%

 

18.51%

 

18.42%

 

 

18.23%

 

17.61%


 

 

 

The author is the Director of Fintotal Insights and Resources.

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