SIP Best Date: Does It Really Matter for Your Returns? Find out
SIP Best Date: Does It Really Matter for Your Returns? Find out
Studies show SIP date has minimal long-term impact; discipline and duration are key
Systematic Investment Plans (SIPs) continue to attract investors looking for stability amid stock market volatility. Under SIPs, a fixed amount is invested every month on a pre-decided date, with professional fund managers handling allocations. But the big question many investors ask is: which date is the best for SIPs to maximize returns?
Research indicates that the choice of date makes little difference over the long term. Whether you invest on the 1st, 10th, or 25th of the month, the annual return difference is usually less than 0.2–0.3%. For instance, if ₹10,000 is invested monthly at a 12% return rate, the corpus can grow to nearly ₹98 lakh in 20 years. A 0.2% variation would change the outcome by only a few thousand rupees.
That said, short-term fluctuations in Net Asset Value (NAV) can slightly affect returns depending on the date chosen. To reduce the risk of missing payments, financial planners advise linking the SIP date to salary credit commonly the 1st, 5th, or 7th of the month. Some also recommend splitting investments across multiple dates (for example, investing ₹3,000 each on the 5th, 15th, and 25th), which helps spread market risk and average out purchase costs.
Experts emphasize that the real drivers of SIP success are investment duration, discipline, and fund selection. Starting early, staying invested through market cycles, and resisting the urge to stop SIPs during downturns are critical for building long-term wealth.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Investors are advised to consult with a certified financial advisor before making investment decisions.
