QUESTION ON SIP RETURNS

POSTED BY BHAVANA ON December 17, 2012 8:25 pm COMMENTS (2)

I was reading q & a section on economictimes website.

There i read that the 14 to 16 % return of equity in 10-15 years is for one time investment return.For regular SIP the returns could be between 8-10 %.

Kindly reply,what return one should expect from equity mf for regular monthly sip in longtime i.e. 10-15 years.

2 replies on this article “QUESTION ON SIP RETURNS”

  1. TheZionView says:

    Bhavana,

    While i dont have exact figure if the return is 8-10 or 12-15 but with historic data for india a lumpsum should have provided higher return in 9 out of 10 cases . SIP is a mechanism to make you invest in regular interval. Its in no way a comparison with lumpsum

    That is the reason you will see people recommending even if you have lumpsum invest in gradually but within 6-10 months.This is just to have mental peace and also the 6-10 months insists the importance of getting the money into the equity sooner than late.

    If you have lumpsum and you are going to invest it as SIP for 60 months it doesnt make sense.

  2. A conservative estimate based on market average for both SIP and lumpsum is 12%
    This is what financial planners use. Any higher value is ridiculously ignorant.

    I have a SIP annualised return calculator in my website

    freefincal.wordpress.com

    which uses historical sensex returns you can play with it and see for yourself. T

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