Does the day of your SIP really matter when investing in an index fund?

Many people try and create a SIP on the last Thursday of the month (monthly expiry of options), thinking that markets have highest probability of going down (or are down)!

(The following is considered by taking into account you invest in Nifty 50 Index fund)

Hence in order to compare the returns, I considered the 3rd day of every month and the last Thursday of the month for a SIP over a 20 year period, and here’s how it looks!

If you invested 1000₹ on the 3rd of every month, over a 20 year period it would give you an annualized return to 14.23% ; whereas if you invested the same amount on the last Thursday of every month, it would give you 14.68%.

So frankly, the day of your SIP won’t affect your returns as long as you keep investing in all cycles of the market.

Remember, it’s not the timing, but the time in market which will seek you the highest returns.

Cheers!

#SIP #investing #Indexfunds #stockmarket #Nifty50

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