Just curious, is there a best date of month to invest in Mutual Fund through SIP mode, say first week or last week of the month, or it doesn’t make a great deal of difference in the larger scheme of things. @nithin would love to hear your insights on this.
hmm… to be honest I am not a MF expert. I didn’t really care for which part of the month I am selecting my SIP date as. The whole idea of investing in MF through SIP is for the long run. I don’t think it matters which part of the month you invest in.
But maybe there could be a trend. We could calculate like a Nifty rolling weekly return for the last 10 years and see if investing in a particular week gave higher return than the rest.
@Karthik @Nupur_Joshi how about doing this? We have the daily OHLC for Nifty on Kite for last 10 years.
If you are a salaried person, and your salary comes on the last date of the month then 1st of the month(next) is best time. Always remember the equation Income - Savings = Expenses.
FundsIndia seems to have done this research, I’m copy pasting an extract
There is no single ‘best’ day to run your SIP. Refer to the table alongside. Any day in the month will give you pretty much the same returns, with the difference in yield less than one percentage point. The yields in our sample funds list mirrored this trend too. Even over longer periods of seven or ten years, differences are slight. This is also borne out by the fact that investing each week doesn’t deliver much higher returns than monthly investments.
It is usually more convenient to set an SIP at the start of the month, as that is when your salary also normally flows in. It is often easy to get carried away or lose track of the balance in your account due to regular household expenses, bills, loan obligations, and so on.