Mutual funds: WhiteOak Capital Mutual Fund released its SIP Analysis Report to address several pertinent questions regarding systematic investment plans (SIPs).
Meanwhile, the latest AMFI data for August showed that total SIP assets under management (AUM) stood at ₹15,18,368 crore, accounting for 20.2 per cent of total mutual fund assets. SIP contributions for August 2025 amounted to ₹28,265 crore, slightly lower than July’s ₹28,464 crore.
The report tries to answer commonly asked questions, including the best time to make an investment in SIPs, the right frequency to invest, the right date to invest, and the ideal investment horizon.
Here we explain some of the findings of this report.
Which SIP frequency to select?
The report notes that in the long term, it hardly matters whether the investor invests daily, weekly or monthly. All three frequencies end up generating somewhat similar returns.
The time period selected for analysis is August 1996 to August 2025. If someone had invested ₹1,000 daily, ₹7,000 weekly, or ₹30,387 monthly, the extended internal rate of return (XIRR) would be 14.20 per cent (daily and weekly) and 14.19 per cent (monthly).
Therefore, the report notes that starting an SIP early and running it for the long term is more important than the frequency one opts for.
Which date to select for the monthly SIP?
The report analysed the last 28+years of index data to conclude that no meaningful difference will come between the average return of different dates’ 10-year SIPs.
However, the report further recommends that the best SIP date is when the investor usually gets their salary credited to his/her bank account.
Which category delivers the best results?
The study concludes that among the three market cap segments, the mid-cap segment was a good investment option for investors seeking to invest via the long-term SIP route.
Average return of Nifty midcap 150 TRI was 17.40 per cent against 13 per cent for large cap (Nifty 100) and 14.70 per cent for small cap (Nifty Smallcap 250).
What is the ideal investment time horizon for SIP?
After comparing the returns on SIPs over a period between 3 and 15 years, the report notes that although equities have proved to be a volatile asset class, the volatility reduces as investors increase their investment horizon.
To summarise, the report has concluded that a successful SIP is more about starting early, maintaining the discipline of investing regularly, and investing for the long term to achieve financial goals. This is less about which date, which frequency and at what stage of the market cycle, etc.
NOTE: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
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