Three Year SIP P&L

A disclaimer to start with here - I am no RIA or MFD. "This guy has a few crores invested in stocks & MFs, so what he says must be correct". Expertise has nothing to do with net worth. Follow the data, and do your own research. If we do not respect our money, no one else will.

And, as I have always maintained - It's not as much as your income but your habits that'd make you rich. All my family investments were in FD. Gold was added in literally milligrams, not even in grams, overtime. From small wires, to small sheet cut outs to finally coins & then, by Lord's grace, bars & bangles. These funded jewellery on marriage occasions.

I had started an experiment of the SIP & Lumpsum Investment modes in MFs in late 2020 but needed to stop & withdraw due to a sudden scare in July, 2024. Do understand that these returns are because of the current bull & momentum market. To expect such returns over long term is foolishness.

And for those who worship SIP like a magic wand -even a 5/7/8 year SIP (point to point return) led to capital erosion thrice in 1999, 2008 and 2020. A 10 year old SIP led to less returns than even good old FD. There is no proof that volatility decreases overtime so your returns from stock market are just based on luck. A value proposition today might turn out to be a value trap tomorrow. And for goodness sake, there is no compounding in MFs! Rolling stone (returns) gather no moss (compounding). All you can do is pray & hope markets don't go southwards when you are approaching your goal of exiting the market.

The difference between Direct plan or Regular plan starts showing results only after 3 to 5 years and jumps to difference of lakhs after 20-25+ years, depending of course on your SIP/Investment amount to start with. So if you are getting better returns or peace of mind (and ass) with the help of a MFD/RIA, then please stay with him/her. As it is, most new "long term horses" turn out to "short term mules" when bear market strikes. Worse still, most chicken out when volatility is there for 2-3 months.

I still have my lumpsum investments in MFs going on along with FD, PPF, Gold & stock purchases.I stopped NPS in 2023 as i found it to be too constrained & illiquid - You lose out on time value of money.

Following is my P&L statement, from CAMS & Kfin, of about three to three and a half years of SIP. Total absolute gain is around 11.5 L on an average SIP of 45-50K per month. There are some funds that I had purchased in lumpsum mode & had to liquidate almost instantly (around 5-6L) & hence the difference in my statement & figures in charts.

For those who check the past returns of a fund with the help of a financial calculator on some sites, year on year, I wish they'd read the terms & condition too. These returns are shown on the basis of the lowest NAV of starting year to the highest NAV of the end year.

@kukdookoo @guest_999 @Starlee