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WhiteOak Capital Mutual Fund’s latest study explores the rising popularity of Systematic Investment Plans (SIPs) by analyzing long-term market data to answer common investor questions. The report offers insights to help investors make more informed decisions, emphasizing that past performance is not indicative of future returns. It serves as an educational guide, encouraging investors to consult financial advisors for tailored strategies.

* What is an Ideal Investment Time Horizon for SIP?

* The study shows that while equities can be volatile in the short term, the longer the investment horizon (ranging from 3 to 15 years), the lower the volatility and higher the probability of earning decent returns, with 100% positive returns observed over 15-year SIP periods.

* Average rolling returns for major indices like Sensex and Nifty over 10-year periods stand around 12.5%, but past performance is not a guarantee of future results, and investors should consult advisors before making decisions.

* Which is better, starting SIP at the Top or Bottom?

* Starting a SIP at the market top can still generate strong long-term returns and often results in higher absolute wealth creation compared to starting at the bottom.

* While SIPs begun at the bottom may have slightly higher percentage returns, the difference evens out over the long term, making the timing of starting less critical than simply starting early and staying invested.

* The biggest risk is delaying SIP investments, as missing out on compounding over time hurts returns more than whether you start at the top or bottom of the market cycle.

* Isn’t it better if I time my monthly purchases?

* Attempting to time monthly SIP investments rarely works, as the best days to invest are only clear in hindsight and waiting for the "perfect" time often results in missed opportunities.

* Even poorly timed SIPs have historically grown wealth over the long term, reinforcing the idea that “time in the market” matters far more than “timing the market.”

* Large Cap, Mid Cap or Small Cap SIP?

* While large caps offer portfolio stability and small caps bring higher volatility, the study finds mid cap SIPs have historically delivered the most consistent and superior long-term returns among the three segments.

* Over a 10-year SIP horizon, Nifty Midcap 150 TRI showed the highest average and median returns, with 98% of SIPs delivering more than 10% returns and 86% exceeding 12% returns.

* Which Date to Select for Monthly SIP?

* Popular strategies like choosing dates near F&O expiry or splitting SIP amounts across multiple days do not enhance long-term returns.

* The best SIP date is the one closest to when the investor receives money, such as salary credit day, to ensure consistency and ease of execution.

* Which SIP Frequency to Select?

* Long-term SIP returns are nearly identical across daily, weekly, and monthly frequencies, with each generating an XIRR of around 14.2% over the same investment period in the BSE Sensex TRI.

* The frequency of SIP matters less than consistency and long-term discipline. Starting early and staying invested is what truly drives wealth creation.

* Shall I stop my SIP since the market is not doing well?

* Equity SIPs that start with low returns (≤8%) in the first five years tend to deliver better 10-year returns on average, according to historical BSE Sensex TRI data.

* Short-term underperformance shouldn’t discourage investors. Staying invested through market cycles often leads to stronger long-term outcomes.

* Who should opt for SIP Top-up?

* SIP Top-up is ideal for investors with growing incomes, enabling them to start small and gradually increase contributions to reach financial goals faster.

* SIP promotes disciplined investing and long-term wealth creation, with data showing higher corpus accumulation compared to regular SIPs over extended periods.

* Isn’t it better if one kept changing the lane and switch to better-performing index every year?

* Chasing last year’s best-performing index does not consistently lead to better outcomes, as investors who switched frequently earned returns similar to or lower than those who stayed invested in one segment.

* Remaining invested in a single segment like Mid Cap yielded higher long-term returns, with Mid Cap SIPs showing the best average 10-year XIRR at 17.42 percent.

* Switching frequently adds complexity without meaningful gain, while staying invested with discipline delivers more reliable results over time.

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