SIP

What is the Best Date for SIPs?

By admin
13 January 2025
6 mins read

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In recent times, systematic investment plans (SIP) have gained immense popularity among investors looking to secure their financial future in a disciplined manner. You can invest your money gradually and regularly with SIPs, which is a wise strategy for enjoying the benefits of compounding and increasing returns over the long term.

As an investor, you want to earn the highest return on your capital. Naturally, you might want to understand when to invest in SIPs or if such a strategy exists at all. Does timing your investment have an impact on your returns? Let us look into this.

The growing popularity of SIPs

In 2022-23, inflows in SIPs reached Rs. 1.56 lakh crore, a 25% rise from the previous fiscal year. There are over 6.4 crore SIP accounts today in the Indian mutual fund market. If we look at historical data, it is clear that investment in SIPs has consistently increased over the years. The popularity of SIPs also has to do with the fact that an instalment can be as small as INR 100 each month.

Before we look at the ideal SIP date to maximise your investments, let’s understand the options available to investors. There are two main ways to invest in mutual funds:

1. SIPs (systematic investment plans)

2. Lumpsum investments

It is important to choose the right approach that aligns with your goals.

Best SIP date analysis

When investing in mutual funds through SIP, a major concern for most investors is the date and frequency of SIP investment. They often believe that a particular frequency or investing on a particular day of the month can help them grow their returns.

But is that so? Let’s understand with this analysis-

Date of SIP investment	Nifty Large midcap 250 Index- TRI (XIRR%)	Nifty Midcap 150- TRI (XIRR%)	Nifty 100- TRI (XIRR%)
1	15.81	17.83	13.75
2	15.80	17.82	13.74
3	15.79	17.81	13.73
4	15.77	17.79	13.72
5	15.78	17.79	13.73
6	15.79	17.80	13.74
7	15.80	17.81	13.75
8	15.82	17.83	13.76
9	15.81	17.83	13.75
10	15.80	17.82	13.74
11	15.81	17.83	13.76
12	15.83	17.84	13.77
13	15.82	17.83	13.76
14	15.81	17.83	13.75
15	15.81	17.82	13.75
16	15.81	17.82	13.75
17	15.83	17.85	13.76
18	15.83	17.85	13.76
19	15.83	17.85	13.77
20	15.84	17.86	13.77
21	15.84	17.86	13.77
22	15.86	17.89	13.79
23	15.86	17.89	13.79
24	15.88	17.91	13.80
25	15.86	17.90	13.78
26	15.86	17.90	13.78
27	15.86	17.90	13.78
28	15.85	17.89	13.77
29	15.81	17.84	13.74
30	15.81	17.84	13.73
31	15.79	17.83	13.71

From the table above, it is clear that there is hardly any difference in the investment performance if the SIP is done on a particular date, or with a high or low frequency.

SIP vs lumpsum investments

Factors	Lumpsum	SIP
*Why choose?*	Lumpsum investments are ideal for investors who consistently track the market and can identify the right time to enter it with their corpus. This is because a lumpsum investment is likely to earn higher returns (if timed properly) than SIP investments which tend to earn an average return over the long term.	SIPs are lower-risk investments since they require investing smaller amounts over a period of time. SIPs also offer a lower barrier to entry to novice or first-time investors since they don’t need to track or time the market as such. Investing smaller amounts at regular intervals reduces the adverse impact of market fluctuations and minimizes the risk of significant losses.
*Returns*	Higher absolute returns.	Average returns over the long run.
*Market timing*	Requires accurate timing for maximum returns.	Reduces the need for market timing.
*Investment capital*	Requires a larger initial investment.	Requires smaller amounts at fixed intervals.
*Market fluctuations*	More susceptible to market fluctuations.	Less affected by market fluctuations.
*Accessibility*	Suitable for investors with significant wealth or market knowledge.	Easier for new investors to start.
*Ease of investment*	Requires active management.	Investors can set up automatic investments without much active management.

How to find the best date for SIP?

When choosing the best SIP date for mutual fund investment, there is no one right answer. Investors have different strategies based on their goals and financial condition.

To put it simply, there is no such thing as a ‘best’ date for SIP investments. Some prefer investing at the start of the month, while others favour the end-of-month approach. However, there is no significant difference or discernible advantage in the returns with variability in the date of investment.

Therefore, investors need not worry excessively about the timing of their SIPs. To pick one, you can take your convenience and financial condition into account. For instance, salaried individuals who receive their pay in the first week of a month can plan their SIP transfers for the following week.

It is, however, essential to focus on maintaining discipline and consistency in your SIP investments. If you want to start your investment journey, a SIP calculator is the right place to begin.

What Should You Do?

There is no such thing as the best date for SIPs. From the data above, it is pretty clear that there is no specific date of the month that can generate better SIP returns for you.

So, what matters is that you start your SIP and be disciplined with your investment. You can plan your SIP instalments based on your convenience and financial needs. For instance, if you're a salaried individual, you can consider investing through SIP in the first week of every month.

You can also use an SIP calculator to further estimate your investment returns and plan your SIP effectively.

Consistent and disciplined investing in SIPs

SIPs offer a powerful way to build wealth in an organized manner. Investors only need to put away small amounts periodically to build a substantial corpus over time. The important thing is to be disciplined with this approach and stay invested for the long run.

Instead of getting caught up in the quest for the best date for starting your SIP journey, focus on selecting a date that aligns with your personal comfort and financial situation. What truly matters is consistency in your investments and maintaining a long-term perspective. So, set aside worries about finding the ‘best’ or ‘worst’ date and prioritize regularity and a stable approach to achieving your investment goals.

Start your investment journey with Tata Capital Moneyfy

Compare your investment options, use tools like an online SIP return calculator, and leverage the power of SIPs to start building your wealth.

If you are considering investing in mutual funds and haven't initiated your SIP yet, begin with Tata Capital Moneyfy. We bring you a reliable platform for managing your investments and starting your SIP journey with confidence. Start multiplying your money with Tata Capital Moneyfy’s all-in-one investment platform and embark on a path of financial stability!

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FAQs

Which date of month is best for SIP?

There is no specific date of the month that generates better SIP returns. It is best to plan your SIP based on your financial ability and individual preference.

Which day of the week is best for SIP?

There is no best day of the week that is known to generate better returns on SIP.

When should I invest in SIP?

You should invest in SIP based on your individual needs and preferences. If you're a salaried employee, it can be a good practice to invest in SIP within the first week of the month, depending on when your salary is credited.