Systematic Investment Plans (SIPs) have emerged as one of the most popular ways for retail investors to grow wealth steadily while shielding themselves from market volatility. Through SIPs, investors contribute a fixed amount on a chosen date every month, which is then professionally managed by mutual fund houses.
But one common question continues to puzzle many: which date of the month is best for SIP investments? Can choosing the right date really make a difference to long-term returns? Let’s find out.
Stock markets move daily, and so do the Net Asset Values (NAVs) of mutual funds. Investors often believe that by picking a “strategic” date—when NAVs are lower—they can buy more units and improve long-term returns.
However, multiple studies have shown that the difference in returns between investing on the 1st, 10th, or 25th of a month is negligible in the long run.
For instance, if an investor contributes ₹10,000 every month and earns an annualized return of 12% over 20 years, their wealth could grow to over ₹98 lakh. If the SIP date were shifted, the difference would only add or subtract a few thousand rupees — often less than 0.2% to 0.3% annually.
Experts suggest that worrying about the perfect SIP date isn’t necessary, at least for long-term investors. The compounding power of SIPs over decades far outweighs the impact of the specific date chosen.
That said, in the short term, choosing different dates can help reduce the impact of market volatility. But more importantly, investors should select SIP dates that align with their salary credit cycle.
For example, scheduling SIPs on the 1st, 5th, or 7th of the month ensures that there are sufficient funds in the bank account. This reduces the risk of missed payments and helps maintain investment discipline.
Some financial planners recommend spreading SIP contributions across two or three dates within a month. This strategy helps to smooth out market volatility further.
For instance, instead of investing ₹9,000 on a single date, an investor can split it into three SIPs of ₹3,000 each on the 5th, 15th, and 25th. By doing so, units are purchased at different NAVs across the month, balancing out short-term fluctuations.
While investors often obsess over dates, financial advisors point out that duration and consistency matter far more than the day of the month.
Key points to maximize SIP benefits:
Start early: The earlier you begin, the longer compounding works in your favor.
Stay invested: Don’t stop SIPs during market downturns — lower NAVs allow you to accumulate more units, leading to higher gains when markets recover.
Choose quality funds: Research and invest in well-managed mutual funds with strong long-term performance.
Maintain discipline: Consistency in SIP contributions builds wealth steadily over time.
There is no single “magic date” that guarantees higher SIP returns. Whether you invest on the 1st, 10th, or 25th, the impact on long-term wealth creation is minimal. Instead of stressing over the date, focus on starting early, staying consistent, and choosing the right funds.
If aligning with salary credit or splitting SIPs across multiple dates makes investing easier, go ahead — but remember, the real growth comes from time in the market, not timing the market.
