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SIP will be made a money printing machine!

If you invest in the stock market, you must have heard about SIP (Systematic Investment Plan). It is a common thinking among those investing in the market that investing at the right time gives good returns. But this has been revealed in a study of Motilal Oswal Mutual Fund. According to the report, the time to start investing in SIP (Systematic Investment Plan), whether at the upper level in the market or at a lower level, both investors get almost equal returns in a long time.

The year 2000-2005: Dot com crash and recovery round

The PE ratio of the Nifty 500 index was 37.26 (at the top) on 24 February 2000 and 11.58 (below the bottom) on 21 September 2001. The result of this is that the investor who started the SIP in February 2000 received a CAGR of 15.47%. In September 2001, the SIP starting SIP received a CAGR of 15.55%. That is, both investors got almost the same returns, while the market situation was completely different.

Year 2006-2010: Global recession round and recovery

During this period, the stock market saw a high speed bull run, then the global recession of 2008 came and later recovered gradually. As a result of this, the SIP started in January 2008 (when PE 27.07) received a return of 13.97%. Those who started the SIP in October 2008 (when PE 9.29) received a return of 14.36%. Again both got almost equal returns.

Year 2011-2015: Fragile five and Modi government expectations

In 2013, India was counted among the 'Fragile Five' countries, causing a huge decline in the market. But in 2014 the electoral atmosphere gave the market again. As a result, the SIP starting in August 2013 received 14.89% returns. On August 2015, the SIP starting the SIP received a return of 15.26%. This again proves that regular investment matters more than time.