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Regular investment in SIP gives huge benefit of compounding. But people remain confused as to how to do daily, weekly or monthly SIP. Finance Influencer, looking at the figures for 2023, told what is the approximate SIP return in Nifty 50 Midcap 150 and Smallcap 250, and in which one you can benefit more.
SIP Investment Tips: There are many benefits of making regular investments in SIP (Systematic Investment Plan). By compounding, you can get good returns in the long run. But many times investors remain confused about how to invest, i.e. do daily SIP, weekly or monthly SIP. Finance influencer Ankur Wariku has told that by investing in which you can earn good returns.
He has calculated for 2023 that if you had done different types of SIP in the three indices of Nifty 50, Midcap 150 and Smallcap 250, then how much return would you have received.
How much return will you get in which SIP?
If you had done daily SIP in Nifty 50, you would have got a return of 12.44%. Apart from this, if you had invested in weekly SIP of Nifty 50, you would have got a return of 12.45% and if you had done monthly SIP, you would have got a return of 12.44%. Meaning the difference between the three is only 0.01%. That means, if Rs 10 lakh had been invested, the difference would have been only Rs 100-200. Apart from this, if you had invested in Nifty Midcap 150 in 2023, you would have got a return of 16.35% in daily SIP. At the same time, in weekly SIP of Nifty 50 you would get a return of 16.36% and in monthly SIP you would get a return of 16.32%. In this you would have seen a difference of only 0.04%, that is, even on Rs 10 lakh, you would have got a profit of only Rs 4-5 thousand.
If you had done a daily SIP in Nifty 50 Smallcap 250, you would have got a return of 13.31%, if you had done a weekly SIP, you would have got a return of 13.32% and if you had invested in a monthly SIP, you would have got a return of 13.29%. That means you would get almost equal returns in all three.
This means that even after 20 years of investment in 2023, the difference on SIP of Rs 10 lakh would be only Rs 2-4 lakh and that too when the market would fluctuate a lot. Before investing in SIP, it is very important for you to understand some things. Monthly SIP is the easiest because you can invest in it as soon as your salary comes. Apart from this, Weekly SIP gives a slightly better average. This is an investment planning method in which you invest a fixed amount in mutual funds every week. Daily SIP gives the opportunity to buy the maximum number of units, but money has to be invested daily.
These are the benefits of investing in SIP
You can start investing in SIP with a little money. SIP can be started with just Rs 500 per month. You do not need a huge amount to invest in this. Apart from this, whether the market is up or down, if you keep investing fixed money every month, you can also expect to get higher returns. Compounding is also an advantage in SIP. Even small amount SIP can give you returns of lakhs and crores after 15-20 years. You get 6-7% from FD, RD or any other scheme, whereas the average return from SIP in the last 15 years is 12-15%. SIP also easily beats inflation. Because inflation increases by 6-7% every year. In such a situation, if the investment is more, the profit is also more.
