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Is Investing in Mutual Fund through SIP fully Safe !

By   /   April 12, 2019  /   No Comments

Many a times i come across people who think investing in mutual funds through SIP route is fully safe. I completely disagree to it.

Investing through SIP is a disciplined way to go about investing in mutual funds, but it does not guarantee 100% safety. This article shows that historically chances of getting negative returns diminishes as number of investment year increases.

For illustration purpose, i have taken Franklin India Bluechip data from 1994-2019 (25 years data).

Let’s see how increasing the SIP period decreases the probability of getting negative returns:

ANY 1 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %   
1994-199512000016934762
1995-1996120000102077-30
1996-1997120000101323-31
1997-199812000013400920
1998-199912000013311819
1999-2000120000227004113
2000-2001120000110730-14
2001-2002120000113709-9
2002-200312000013064115
2003-2004120000218070106
2004-200512000014793338
2005-200612000015591547
2006-200712000014755737
2007-200812000016234454
2008-200912000088600-57
2009-201012000017080363
2010-201112000013697024
2011-2012120000106559-22
2012-201312000013480521
2013-201412000012796811
2014-201512000014397633
2015-2016120000116908-4
2016-20171200001221423
2017-201812000013160316
2018-2019120000118273-2

 

ANY 2 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-1996240000232627-3
1995-1997240000180011-28
1996-19982400002527124
1997-199924000030941523
1998-200024000059859980
1999-200124000030702523
2000-2002240000206942-14
2001-200324000027155311
2002-200424000050625466
2003-200524000041969350
2004-200624000036525638
2005-200724000037597941
2006-200824000037792241
2007-2009240000172787-32
2008-201024000033425830
2009-201124000034699334
2010-2012240000218550-9
2011-201324000026989111
2012-201424000026827010
2013-201524000031957426
2014-20162400002637898
2015-20172400002466742
2016-201824000028480316
2017-20192400002459672

ANY 3 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-1997360000280647-16
1995-1998360000344895-2
1996-199936000046557716
1997-2000360000109072664
1998-200136000062834933
1999-20023600003722202
2000-20033600003870914
2001-200436000081709548
2002-200536000077883046
2003-200636000074982543
2004-200736000068267138
2005-200836000071164540
2006-2009360000284581-15
2007-201036000048957519
2008-201136000054798325
2009-20123600003902715
2010-20133600004118628
2011-20143600004088658
2012-201536000051209921
2013-201636000044293013
2014-20173600004031337
2015-201836000044100212
2016-20193600003946175

 

ANY 4 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-1997480000462793-1
1995-19984800005868509
1996-1999480000152664550
1997-2001480000105390135
1998-200248000064277113
1999-20034800005919099
2000-2004480000107196135
2001-2005480000116620239
2002-2006480000125804242
2003-2007480000124608242
2004-2008480000115971839
2005-2009480000457641-2
2006-201048000069582117
2007-201148000073896420
2008-20124800005546056
2009-201348000062955412
2010-20144800005566267
2011-201548000070502517
2012-201648000063933913
2013-201748000059395610
2014-201848000063724513
2015-20194800005461776

 

ANY 5 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-19996000007419528
1995-2000600000186517639
1996-2001600000143084830
1997-2002600000100108018
1998-200360000092718516
1999-2004600000152377432
2000-2005600000148381932
2001-2006600000180621638
2002-2007600000199064241
2003-2008600000198285441
2004-20096000006900015
2005-2010600000101509619
2006-201160000099256918
2007-20126000007107566
2008-201360000083788212
2009-201460000078319610
2010-201560000090778415
2011-201660000083615712
2012-201760000080317411
2013-201860000087659214
2014-20196000007365927

 

ANY 6 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-2000720000229813833
1995-2001720000172358225
1996-2002720000131846518
1997-2003720000137121419
1998-2004720000226336633
1999-2005720000204687130
2000-2006720000225567732
2001-2007720000279373838
2002-2008720000307064740
2003-2009720000111686013
2004-2010720000144377320
2005-2011720000138515919
2006-20127200009181127
2007-2013720000103583611
2008-2014720000100002010
2009-2015720000121868616
2010-2016720000104300711
2011-2017720000101282710
2012-2018720000113900914
2013-20197200009688299

 

ANY 7 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-2001840000209797223
1995-2002840000156494316
1996-2003840000176452819
1997-2004840000324285932
1998-2005840000296855730
1999-2006840000305245531
2000-2007840000345221834
2001-2008840000424396138
2002-2009840000168096217
2003-2010840000223127624
2004-2011840000191227120
2005-2012840000123910410
2006-2013840000129870211
2007-201484000012060479
2008-2015840000151621415
2009-2016840000136018112
2010-2017840000123316610
2011-2018840000140197313
2012-2019840000122345310

 

ANY 8 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %     
1994-2012960000188017515
1995-2003960000206997317
1996-2004960000411047930
1997-2005960000418920930
1998-2006960000435673831
1999-2007960000461953132
2000-2008960000520599134
2001-2009960000228941419
2002-2010960000327197926
2003-2011960000288060523
2004-2012960000167008612
2005-2013960000170562613
2006-2014960000147963310
2007-2015960000179892714
2008-2016960000166371312
2009-2017960000157102411
2010-2018960000167834012
2011-2019960000147860610

 

ANY 9 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-20031080000246061916
1995-20041080000478426527
1996-20051080000527044329
1997-20061080000608409131
1998-20071080000653036132
1999-20081080000691142133
2000-20091080000278830018
2001-20101080000439450126
2002-20111080000416027925
2003-20121080000246182316
2004-20131080000225198514
2005-20141080000190315311
2006-20151080000217434514
2007-20161080000195212912
2008-20171080000189434911
2009-20181080000210210913
2010-2019108000017467669

 

ANY 10 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-20041200000564599925
1995-20051200000611012127
1996-20061200000761415130
1997-20071200000906100432
1998-20081200000970312033
1999-20091200000367269519
2000-20101200000531488624
2001-20111200000554056125
2002-20121200000350812118
2003-20131200000325567617
2004-20141200000247179313
2005-20151200000275550314
2006-20161200000233512112
2007-20171200000220157311
2008-20181200000250765013
2009-20191200000215794910

 

ANY 11 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-20051320000718402025
1995-20061320000880238428
1996-200713200001130260731
1997-200813200001340035933
1998-20091320000512040220
1999-20101320000694649024
2000-20111320000667229024
2001-20121320000463667919
2002-20131320000458207619
2003-20141320000351641715
2004-20151320000353579715
2005-20161320000292800412
2006-20171320000260954111
2007-20181320000289299612
2008-20191320000255144510

 

ANY 12 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-200614400001032206626
1995-200714400001304341929
1996-200814400001667531332
1997-20091440000703770021
1998-20101440000961733825
1999-20111440000867855224
2000-20121440000556201319
2001-20131440000601275720
2002-20141440000489690917
2003-20151440000496924117
2004-20161440000372404113
2005-20171440000324108712
2006-20181440000340470212
2007-20191440000292534610

 

ANY 13 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-200715600001526981627
1995-200815600001921861730
1996-20091560000873601221
1997-201015600001315452626
1998-201115600001196269525
1999-20121560000720238819
2000-20131560000718581019
2001-20141560000638593618
2002-20151560000686356919
2003-20161560000518640515
2004-20171560000408903513
2005-20181560000419683913
2006-20191560000342185510

 

ANY 14 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-200816800002247135628
1995-200916800001005490720
1996-201016800001628771025
1997-201116800001631211225
1998-20121680000988759720
1999-20131680000926532620
2000-20141680000760682818
2001-20151680000890682819
2002-20161680000711895017
2003-20171680000564676314
2004-20181680000526040514
2005-20191680000419046511

 

ANY 15 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-200918000001174169920
1995-201018000001872091624
1996-201118000002016475525
1997-201218000001344380421
1998-201318000001266938521
1999-20141800000977115118
2000-201518000001058214919
2001-20161800000920343218
2002-20171800000770533416
2003-20181800000721423415
2004-20191800000522244312

 

ANY 16 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-201019200002183284623
1995-201119200002315668824
1996-201219200001659383421
1997-201319200001717761521
1998-201419200001331403419
1999-201519200001355205719
2000-201619200001091255317
2001-20171920000992574916
2002-20181920000979626216
2003-20191920000711824313

 

ANY 17 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-201120400002698319723
1995-201220400001904012320
1996-201320400002117093121
1997-201420400001800611820
1998-201520400001841364020
1999-201620400001394238018
2000-201720400001174632516
2001-201820400001258128917
2002-20192040000962358515

 

ANY 18 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-201221600002216878520
1995-201321600002427211021
1996-201421600002216228920
1997-201521600002485216921
1998-201621600001890204519
1999-201721600001497373317
2000-201821600001486480417
2001-201921600001232589515

 

ANY 19 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-201322800002823833820
1995-201422800002538994019
1996-201522800003055531221
1997-201622800002547047319
1998-201722800002025682918
1999-201822800001891288317
2000-201922800001454159015

 

ANY 20 YEAR SIP RETURN

YEARINVESTMENTRETURNRETURN %
1994-201424000002951791819
1995-201524000003498433020
1996-201624000003128867819
1997-201724000002725359719
1998-201824000002553937318
1999-201924000001846944016

 

 

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  • Published: 1 week ago on April 12, 2019
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  • Last Modified: April 12, 2019 @ 4:26 pm
  • Filed Under: Mutual Fund

About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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