Which is the Best SIP date for Mutual Fund Investments?

Which is the Best SIP date for Mutual Fund InvestmentsWhich is the Best SIP date for Mutual Fund Investments?


Many of us has been investing in mutual funds through Systematic Investment Plan (SIP). I have been saying in various articles not to invest on one single date in a month and need to diversify during the month among various mutual fund schemes to avoid over investing on a particular date. However, even I was getting doubt which could be the best SIP date for mutual fund investments. I have done some analysis which I would share in this article. Which is the Best SIP date for Mutual Fund Investments? Should you still consider the Best SIP dates in mutual fund investment or stop timing the market?

Also Read: Top Value Mutual Funds invests based on value investing approach – Who should invest?

Which are the best SIP dates which investors are considering in reality now?


Below are various observations based on investor behavior from various investor forums and based on comments provided by readers on our blog.

1) Investors feel investing through SIP on various dates are better instead of one specific date.

2) Investors are thinking that instead of investing on the 1st of every month, one should invest during the end of the month too. However, it is difficult as most of the bank accounts are empty during the end of the month.

3) Investors are trying to time the market. Means, when SENSEX drops for a few points, they are going ahead and investing in them in lump sum for that month.

4) Investors believe that there could be different dates for equity funds and debt funds.

Which is the Best SIP date for Mutual Fund Investments?


Now let us go practical approach. Let is take some data points which I did to prove which dates are best for SIPs for mutual fund schemes. I have taken 3 funds from large cap, Midcap and smallcap category and did below analysis. This analysis is based on a Rs 10,000 SIP investment per month on each date as of 1st, 5th, 10th, 15th, 25th and 30th of the month. 1st and 5th are crucial as many of us gets a salary and we want to invest during that time. 25th could be good to check as F&O expiry happens and we could see selling happening in stock markets. 30th check, of course, helps as most of us would not have any money in a bank account during that time, hence people would think that NAV would be lower during that time.

# Analysis 1 – Aditya Birla Sun Life Frontline Equity Fund (Largecap/Diversified)


The amount invested is Rs 10,000 per month on these dates for 10 years. The SIP returns are between 15.75% to 15.96% for this largecap mutual fund.

1st of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.6 Lakhs.

5th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.59 Lakhs.

10th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.58 Lakhs.

15th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.58 Lakhs.

20th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.55 Lakhs.

25th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.65 Lakhs.

30th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.5 Lakhs.

Conclusion: 25th of the month is best, followed by 1st, 5th and 10th dates.

# Analysis 2 – Aditya Birla Sun Life Frontline Equity Fund (Largecap/Diversified) for 5 years


The amount invested is Rs 10,000 per month on these dates for 5 years. The SIP returns are around 14.9% to 15% for this largcap/diversified fund.

1st of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.78 Lakhs.

5th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.77 Lakhs.

10th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.75 Lakhs.

15th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.75 Lakhs.

20th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.71 Lakhs.

25th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.72 Lakhs.

30th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 8.68 Lakhs.

Conclusion: 1st of the month is best and followed by 5th and 10th.

# Analysis 3 – Reliance Smallcap Fund (Smallcap)


The amount invested is Rs 10,000 per month on these dates for 5 years. The SIP returns are around 26.2% to 26.6% for this Small Cap Mutual Fund Scheme.

1st of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.72 Lakhs.

5th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.64 Lakhs.

10th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.6 Lakhs.

15th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.6 Lakhs.

20th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.5 Lakhs.

25th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.49 Lakhs.

30th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 11.42 Lakhs.

Conclusion: 1st of the month is best, followed by 5th and 10th dates.

# Analysis 3 – HDFC Midcap Opportunities (Midcap)


The amount invested is Rs 10,000 per month on these dates for 5 years. The SIP returns are around 20.7% to 20.7% for this Midcap Mutual Fund Scheme.

1st of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.16 Lakhs.

5th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.12 Lakhs.

10th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.1 Lakhs.

15th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.09 Lakhs.

20th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.04 Lakhs.

25th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10.04 Lakhs.

30th of the month – Amount invested is Rs 6 Lakhs and SIP invested amount would have grown to Rs 10 Lakhs.

Conclusion: 1st of the month is best, followed by 5th and 10th.

You may like: Best High Return Balanced Mutual Funds to invest now

Which is the Best SIP date for Mutual Fund Investments?


Let us conclude the analysis now.

1) The best SIP dates as per some of the above analysis seems to be 1st of the month.

2) The second  and third best SIP dates as per some of the above analysis seems to be 5th and 10th of the month.

3) The SIP amount growth differences between all these dates has only a small impact. Means, there is no significant differences.

4) Hence it is ruled out that even if you put SIP dates as per your convenient time, you are not going to loose much.

5) Forget about timing now and start investing as much as you can every month by creating a financial goal and investing in some of the top performing mutual fund schemes.

All the best of investing through SIP in mutual funds!!!

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Suresh

Which is the Best SIP date for Mutual Fund Investments?

14 comments

  • ManoharL

    Great analysis..
    If you have time please write an article on how to balance mutual funds portfolio as per risk and age.

  • Sekhar

    Great analysis! I always had this question in my mind. Thank you for answering it!

  • Gayithri

    Hi Could please tell which is best plan for kids now . And i have seen ICICI smart kid plan. Is this good.

  • Shubh mangal

    Hi dear,
    I m a 28 yrs old married person. My investments are as follows:-
    (1)10,18,250 rs (lumpsum) in ICICI pru equity & debt fund. (2017)
    (2)10,00,000 lump sum in Aditya birla SL hybrid 95 fund.(2017)
    (3)Rs 10,00,000 CANARA robaco hybrid fund. (2017)
    (4) Rs 4,94,000 in HDFC hybrid eq fund. (2018)
    (5) Rs 1,20,000 in IDFC infrastructure fund. (2017)
    (6) RS. 6,00,000 in INVESCO INDIA DYNAMIC equity fund. (2018)
    (7) Rs. 1,00,000 in Sundaram Lt microcap tax advantage fund. (2017)

    And other than these investments
    I have 3 SIPs also that i started from 10th sept 2018
    (1) Rs 1,000 Axis multicap fund
    (2) Rs 2,000 Franklin india smaller cos
    &
    (3) Rs 2,000 Kotak emerging equity fund.
    I am also willing to increase the SIPs by 10% per annum

    So my question is that how much time it may take to achieve a target of rs 3,00,00,000/- from all of the above investments…
    Plz reply …

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