Is SIP really a good investment method?


Yes. SIP is the only option to save. As far as myself is considered, till 2018, returns are good. We have to encash it when we are in high return. Instead of continuing in the same SIP, we can convert the same to Liquid funds. Many investors not doing this(mine also).
So it’s not the SIP to be blamed, it’s our mindset. As told above by Mr. Aravindan, it’s a good Avenue to save for future start with just ₹1000 pm.


I dont think this is right, which option you used in that website? It shows history upto 2013 only for HDFC Top 100 fund


Scroll below the the return calculator in the link:


Also try for other funds. Use the SIP tab. Shocking!!!


The return is low because of last two bad years.


So that means SIP are widely prone to take the hit with just 1 or 2 bad years.
Not a trustworthy investment scheme as that Fknol article suggests…


In the link I have sent before do check 10-12 year returns as well. When I last checked the returns were -30% approx. Don’t just check 3-5 year returns. Most people invest in MFs with an aim to remain invested for 10-15 years.


The above screenshot is for HDFC TOP 100 fund. You can see for others as well. It’s truly an eye opener


I seriously doubt your source, Please check through authentic source like value research, this is one of the best fund , consultancy wise, manager by one of the best fund manager, if you have heard of.


See the NAV of HDFC Top 100 in Jan 2006, it’s around 82, the current NAV is around 468.! See the graph also.


Please see if you clear the dates, it’s giving you huge losses, so there is some serious problem in the calculation. If still you believe on this site’s calculation, then go for Other investment option. :blush:


5 year return 6.45%, and Since inception 19.23%?
That’s it???

What will SIP do even in such cases?


Nikhil the returns you are showing are for lumpsums. Lump sum returns and SIP returns will be vastly different because you’ll go buying the market even when it goes into bubble territory. So when you average out your holdings your average NAV turns out to be much higher.

We are talking SIP returns on this forum. What you require is a SIP returns calculator, which is what I have shared. If you don’t like this calculator, share your own. Though the results won’t differ because it is based on an algorithm calculating on basis of closing daily prices and that won’t change from website to website. But please do share your own calculator.


SIP is a very good investment method provided its a diversified equity fund which is popular and has a very long track record, you have a goal, you are willing to forget that money for 15 years or more, you will come out when the goal is reached even if the goal is reached in less than 15 years, you will monitor it once a year, preferably the fund should have a 1 to 5 rating, you invest in the growth scheme of the fund and not the dividend scheme, if possible increase the sip in a bear market and you do not panic in a bear market as the phase is temporary.


It clearly shows that SIP in Open ended Equity funds fails miserably over long term.
A simple compare indicates that SIP is useless, and LUMPSUM always gives better returns over 3 year and 5 year periods:

See for yourself:

Investors are being fooled in the name of SIP for so many years, as this FKNol. com article rightly claims:


Hi @ipranavgaurav ,
And how are you able to deduce that? Where on that website is it mentioned to “read carefully in downtrend market SIP returns are good in uptrend market lumpsum return are good”, and most importantly - what and where is the proof? because the above screenshot indicates otherwise!

Even if that statement were true, nobody knows when an uptrend starts and ends, and nobody knows when a downtrend starts and ends.

In a nutshell, SIP does not guarantee anything…


SIP is suggested for the average investor

  1. Who does not have time to check market regularly

  2. Who does not have idea of market levels

An average retailer would do lumpsum when Modi won election and Nifty was at the top around 12000. That is why SIP is suggested.


Yes, so please keep doing FD with State Bank of India, it will surely help to increase your money , SIP is total failure and we are going to loose money.
We can buy gold too or real estate is also gud option. What’s your opinion guys? I think PPF or SBI is safest one.


@sseth @nikhil27 NSC , 10Y GSec, TBill are also better option then :wink:

1 Like