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We all want extra returns.
So, we evaluated one investment strategy for you.
An investor puts in money every month when markets are at their lowest.
We then compared the returns with someone who does an SIP on a fixed date.
Result: The difference in returns is not much.
A 🧵
So, we evaluated one investment strategy for you.
An investor puts in money every month when markets are at their lowest.
We then compared the returns with someone who does an SIP on a fixed date.
Result: The difference in returns is not much.
A 🧵
It’s impossible for someone to know when the markets will be at their lowest every month.
An #investor has to be very lucky to do this.
But even if someone gets lucky, he or she doesn’t make significantly higher returns.
An #investor has to be very lucky to do this.
But even if someone gets lucky, he or she doesn’t make significantly higher returns.
Let’s take a hypothetical situation.
Say, every month, your SIP is done in #Sensex at the lowest point of the month for 10 years.
Investment period: April 2013 to March 2023.
Your returns would have been 12.19%.
Now, let’s compare it with a regular investor.
Say, every month, your SIP is done in #Sensex at the lowest point of the month for 10 years.
Investment period: April 2013 to March 2023.
Your returns would have been 12.19%.
Now, let’s compare it with a regular investor.
Let’s assume another investor did SIP on the last day of the month (just a random date).
The investment period is the same, i.e., from April 2013 to March 2023.
This person would have earned 11. 81% return.
The difference is just 38 basis points.
The investment period is the same, i.e., from April 2013 to March 2023.
This person would have earned 11. 81% return.
The difference is just 38 basis points.
What’s the takeaway here?
When you are a long-term SIP investor, you don’t need to be lucky.
Being disciplined does the trick for you.
When you are a long-term SIP investor, you don’t need to be lucky.
Being disciplined does the trick for you.
There’s another interesting piece of data that shows timing or the best day to invest is an illusion when it comes to SIPs.
We have done a Twitter Thread on the same.
Check it out to know that there’s no best date of the month to schedule your SIP.
We have done a Twitter Thread on the same.
Check it out to know that there’s no best date of the month to schedule your SIP.
https://twitter.com/ETMONEY/status/1641821986853904384
We put a lot of effort into creating such informative threads.
So, if you find this useful, show some love. ❤️
Please like, share, and retweet the first tweet.
So, if you find this useful, show some love. ❤️
Please like, share, and retweet the first tweet.
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