If you plan to start SIP investment and looking for what is the best date for SIP for a better return.
You are on the right page!
If you want to know which is the best date for SIP here you will get the answer.
Hello, friends welcome to “Multibaggercalls.com”. Here in this article, I explained which is the Best Date For SIP Investment.
Most of the beginners are confused about which is the perfect date for SIP investment and what is the right time to invest in Mutual funds & Stocks.
So, they ask their financial planner/investment advisor for suggestions.
Most financial planners/Investment advisors may suggest you do SIP investment between the 1st to 10th of the month.
But trust me guys investing in any mutual fund or stocks at the starting of the month, not a great deal.
After doing deep research and lots of independent case studies I come to know that doing SIP between the 1st to 10th of every month is not the most suitable date for SIP.
Then why does your financial planner/Investment advisor ask you to start your SIP at the beginning of the month?
Because they focus only on their commission.
Every common salaried person will get their salary at the beginning of the month.
And your financial planner/Investment advisor asks you to set your SIP date after 2 or 3 days of your salary.
Because if you set your SIP date in the middle of the month or last of the month, You may skip your SIP due to any emergency or Non-availability or cash in your account.
So, Always your financial planner/investment advisor suggests you set your SIP date nearby your salary date.
Here I will suggest to you, how you can increase your return by 1% by changing your SIP investment date.
Also Check:- Penny Multibagger Stocks For Next 10 Years.
Best Date For SIP Investment In Mutual Fund & Stocks.
Normally every investor does SIP at the beginning of the month because your financial planner/investment adviser suggests you this date.
As per some independent studies investing in the mutual fund or stocks at the beginning of the month is not a good decision.
By changing the SIP date you can earn a 1% additional return than your existing SIP date.
The SIP investment date may be different for Mutual funds and Stocks.
The perfect date for SIP Investment in Mutual Funds and Stock Market are as follows:-
- End of the month
- Near the date of expiry
End Of The Month.
If you start your SIP between 25th to 30th of every month. Then you can generate a 1% additional return on your investments compared to any other day of the month.
You can also do backtest, you will also realize 25th of every month is the best to date for SIP investment in a Mutual fund.
If you plan to do SIP on stocks then the second option is best for you.
Near The Date Of Expiry.
Stocks are trading in the future and the options market is best for SIP investments.
As per the historical data stocks, trade in the future, and options market is trading at the lower level on the date of expiry.
The expiry date for stocks trading in the future and options market is between 25th to 30th of every month.
Near the expiry date, traders unwinding the position there for the stocks have come at a lower level.
As per my opinion, the Perfect date for SIP investment is the 25th of every month for mutual funds and stocks.
So, investing in stocks nearby the expiry date will give you the best return.
What Is SIP?
When you invest some of the amounts in any Mutual fund or Stock systematically. It is known as a systematic investment plan (SIP).
SIP amount is debit from the investor’s bank account on the set date.
SIP (Systematic Investment Plan) will help you reduce market risk.
If you are not well known about the stock market SIP investment is the best option for you.
Example Of SIP Investment:-
If you invest Rs.1000/- per month in a mutual fund or stock on a particular date for the long term.
It’s called a systematic investment plan (SIP)
Also Read:- Best Mutual Funds To Invest In For Long Term.
Why SIP Is Important?
As a normal salaried person, you are unable to track or study the stock market regularly.
So, you are not able to understand stock market downs and ups.
At this stage, SIP investment is a great idea.
By investing in stocks on a SIP basis you are free from market risk.
SIP will help you to buy stocks or NAV of a mutual fund at every stage.
You no need to worry about you buy NAV or stock at a high price or low price.
If you invest in stock through SIP, You buy stock in 1 month at a rate of Rs.50, In the next month you buy the stock at a rate of Rs.60, In the 3rd month you buy the same stock at Rs.45 and in the 4th month you buy the stock at Rs.70.
Here in the above example, you can see that A single stock is bought at different rates.
Due to many reasons, market conditions may change continuously and SIP investment will help you to reduce market risk.
FAQ On Best Date For SIP
Does The Date Of SIP Matter?
SIP date is the most important part of SIP investment, you can increase your investment return by changing the SIP date.
Can I Change The Date Of The SIP?
Yes, you can change your SIP date any time by submitting a request to your financial adviser or broker.
Can I Stop SIP For Few Months?
You can stop SIP for few months, some of the fund houses allow you the op[tion for SIP pause.
I hope now you understand which is the Best date for SIP to invest in Mutual funds and stocks. If any queries or suggestions regarding SIP please comment in below comment box.