Optimizng investment strategies through SIPsfor working class.

General
1

Dear Zerodha mates,

the fifth of every month is known as “Mutual Fund Day” based on basic research. This is because many people receive their salary on the first day, and if it falls on a weekend, they may get it on the second or third day. As a result, people often choose the fifth of the month to invest their money.

Here is an alternative strategy, Instead of investing the same amount every fifth of the month in the stock market, Dumping the same amount on every expiry date. The expiry day is the last Thursday of every month, which can be the 25th, 26th, or 27th. By consistently investing a fixed sum on every expiry day, one might outperform others.

I am Seeking your professional opinion on allocation & potential adjustments on Investing you as an investor dumping 8000 INR/month in Indian equities (60% Large, 20% Mid, 10% Small), 30% International Equity, and 10% Gold mutual funds.

Regards,
Aaron Rego

2

Hi @Aaron_Rego

The decision to select the date of SIP should be based on one’s convenience rather than expecting any major change in returns. Historical data also suggests that the returns are the same no matter when we invest.

Check this post out for more insights regarding this topic:

1 Like