Top Five Investments

We have hard a lot about SIP in the last couple of years and myth is that SIP gives better return, than lump sum payment over a long period of time.

But the reality is far from the truth. In my study, I choose 6 funds which has given more than 25% return over the period of five years on a lump sum payment and tried to match their return on SIP for the same period. The results are shocking.

Fund Nme	1 month return (%)		6 month return (%)		1 year return (%)		3 year return (%)		5 year return (%)
	SIP	Non-SIP	SIP	Non-SIP	SIP	Non-SIP	SIP	Non-SIP	SIP	Non-SIP
Birla Sunlife Frontline Eqiuty	3.02	3.13	-0.40	50.98	-0.42	11.83	-0.09	18.99	0.10	29.80
Sundaram BNP Paribas Select Midcap	1.95	0.78	-0.52	59.08	-0.52	6.15	-0.19	9.35	0.09	35.96
HDFC Growth	1.11	1.14	-0.48	37.44	-0.45	1.06	-0.09	16.57	0.11	29.09
Sundaram BNP Paribas Taxsaver	2.64	-0.47	-0.34	37.21	-0.38	6.74	-0.07	16.22	0.08	34.46
Reliance Growth	1.64	1.46	-0.52	51.55	-0.50	2.02	-0.13	17.27	0.13	36.83
Magnum Contra	2.29	1.64	-0.46	51.94	-0.47	6.97	-0.14	14.67	0.11	38.59

 

Just look at the five year return of SIP. Practically , the investors have got nothing. SIP has given negative return for all these funds in 6 months, 1 year and 3 years period. Where as, lump sum payment has given a positive return for  all funds during the same period.

Sundaram BNP Paribas Select Midcap has given 59.08% return for a lump sum payment in the last 6 months. For the same period, SIP return is -0.52%.

Verdict:

If you are looking to invest in mutual fund, don't waste your money on SIP.

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