Best SIP investment date in a month?

POSTED BY Sunnydoc ON May 4, 2011 10:25 pm COMMENTS (7)

Hi everyone,

I was just wondering, what would be the best date in a month to invest in SIP by ECS autodebit?

Would it be the 1st, 5th, 10th, 15th, 20th or 25th?

I know it probably makes no sense to time the market, but are there any behavioural issues we could be missing out here? For example, maybe people encash out usually at the end of the month or the beginning of the month to meet their planned expenses, so would the 1st or the 25th be the ideal date?

Please provide your valuable views. Maybe a healthy debate perhaps, what say Manish? 🙂

 

Sunnydoc

 

7 replies on this article “Best SIP investment date in a month?”

  1. Dominic Prakash says:

    It is kind of asking which date in a month market will always be down. 🙂

  2. Sunnydoc says:

    Yes it makes sense.. 1% difference anyway wont make any dent in my goal plans.. Thanks.. 🙂

  3. prabeesh says:

    The Answer is simple There is None. In a long run it will not matter much .I don’t think it will even be in range of 1-1.5%.
    It should be below 1% which should make not much of a difference in your goal. If your goal will fluctuate within 1% difference ,there is a serious problem that you need to look at your financial plan.

  4. Sunnydoc says:

    Manish what are your views on this please let me know..

  5. Sunnydoc says:

    Wouldnt the extra 1 – 1.5% be worth it?

  6. Sunnydoc says:

    Ok I will try to find that article.

    But dont you think that a lot of selling happens usually in the beginning or ending of the month rather than in between? I’m quite ignorant of these things, but I was just wondering from a common man’s perspective.

    My question may be sounding silly or senseless I guess..

  7. I don’t remember the website link but sometimes back, I read one article wherein the person had done all SIP calculations on some well performing funds on different dates taking the data of last 10-15 years. And the result was hardly the difference of +/- 1-1.5%. So, he concluded that there is no major difference in fund performance even if you select different dates. The important point is that one should not stop or exit from fund when market is down.

    Hope it will help you.
    InvestmentKit.com

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